Trade union bank in private equity tie-up

A BANK owned by a collection of trade unions has launched a tie-up with private equity firm Enterprise Ventures.

Birmingham-based Unity Trust Bank has set up a £3m loan fund which will invest alongside equity funding from Manchester-based Enterprise.

The support will be aimed at small businesses and could create more than 80 jobs.

Unity specialises in lending to social enterprises and charities. It is 73% owned by more than 30 unions, while Co-operative Bank holds the other shares.

Andrew Jesson, head of structured lending at Unity Trust Bank, said: “Job creation and sustainable business development are key to developing more prosperous and sustainable communities.

“We’re pleased to be working in partnership with Enterprise Ventures to provide additional finance in support of its venture capital funds. Together we will ensure the robust development of businesses and local economies in the region, both creating and preserving much needed jobs in areas particularly affected by the economic downturn.”
 
Enterprise Ventures manages around £145m in funds for small businesses, including The North West Fund for Venture Capital, Lancashire’s Rosebud Fund, the Finance Yorkshire Seedcorn Fund and Small Business Loans Funds and the Coalfields Funds.
 
Chief executive Jonathan Diggines said: “We are delighted to be working with Unity Trust Bank – we have seen its expertise and commitment to socially responsible investment first-hand.

“The new Unity loan fund is a vital source of finance at a time when small businesses are finding real difficulty in accessing conventional bank funding. It also demonstrates the way in which venture capital is helping to leverage additional funding for North West businesses.”