EV, Birmingham

EV – the independent venture and growth capital provider – is playing a key role in helping to plug the funding gap for regional SMEs.

The company, which now manages £130m of investment funds, has been pumping around £1m a month into the regional economy through its investments in SMEs – both start-ups and existing growth businesses.

EV now operates from a network of offices in Birmingham, Manchester, Liverpool, Preston and Leeds and it has almost doubled funds under management from £77m to £130m within the last year.

It has also expanded its activities into the South of England, with recent investments in Cambridge and London. The 35-strong EV team is now active across all English regions.

The EV expansion comes at a time when many small businesses are encountering real difficulties in finding funds for growth.

Chief executive Jonathan Diggines says: “Make no mistake – businesses are struggling to attract the appropriate levels of debt and equity which are the basic building blocks that enable them to grow.

“Through our wide range of funds – debt and equity – we are often able to provide the necessary finance when others cannot.

“EV can invest up to £2m to support the full range of transactions – start up, early stage, development capital, management buy-outs.

“In addition to these, we believe there will be an increasing number of ‘management break-outs’ – where an experienced management team opts out, to start a similar business for itself.

“There are currently many highly capable managers locked into companies which they feel they are going nowhere – sometimes because the business is struggling with too much debt, or is a neglected part of a group which is not sufficiently focused or ambitious.

“The team’s newly-formed business will have a vitality that the old one no longer has.”

EV has a growing investment portfolio trading across a broad range of sectors, from manufacturing and distribution, to biomedical and healthcare, and works in partnership with management teams to grow the business and add value.

EV has a track record, dating back over 25 years, managing funds for public and private sector clients, including the EU and UK government bodies, local authorities, pension funds, banks and high net worth individuals.

Mr Diggines added: “EV is playing an essential role in providing capital for SMEs and growing small businesses at the time when they need it most.

“It is possible to do this, while at the same generating an attractive return for investors.”