£100m war chest for NVM

INVESTMENT firm NVM Private Equity (NVM) expects to invest £100m across the UK over the next two to three years.

NVM typically invests £2m-£10m in companies looking to grow organically, acquire another business or finance a change of ownership through a management buyout.

In August NVM’s three Venture Capital Trusts (VCTs) launched a joint £50m share offer to bolster the firms funds which has so far raised around £25m. This will be complemented by returns from other investments.

This year NVM’s northern investment team, led by Andy Leach and Mauro Biagioni, has invested £10m in Nelson-based Buoyant Upholstery and Cleveland Biotech in Stockton-on-Tees. They expect to invest a further £20m next year.

Mr Leach, who covers the North West, said: “My objective is to do a couple of deals a year. In the part of the market we’re in there’s always opportunity because it’s quite a broad church and covers a wide range of businesses.”

He added: “At this end of the market you can’t rely on financial engineering and debt, it’s all about backing companies that are going to show real growth, both in earnings and in attractiveness to future purchasers.”