Finance Yorkshire selects fund managers
FUND managers responsible for investing the money in the £90m Finance Yorkshire venture capital fund have been named.
NorthStar Equity Investors in consortia with NEL, EV and FSY, will manage the £90m fund.
The fund, which recently opened its office at the Capitol Business Park in Barnsley, was given the green light to begin investing earlier this month after receiving the outstanding £45m of the total fund from the European Investment Bank.
Finance Yorkshire had already secured £45m from the European Regional Development Fund (ERDF) and Yorkshire Forward.
The venture and capital loan fund has been established to help small and medium-sized businesses to meet the gaps in funding they need for growth and development.
It is set to complete its investment phase by December 2013 and is split into three sections, targeting loan and equity investments into start-ups, technology based companies and growing SME’s.
The Seedcorn Fund, managed by EV, will invest up to £780,000 in pre-revenue, high risk, early stage innovative technology and knowledge-based businesses. The Seedcorn Fund has a total of £15m to invest and will be making tranched investments in companies that have the potential of high returns.
Listen to Ed French, director of the Seed Cord Fund, explain more about it here.
The Small Loan Fund will be managed by FSY and will be providing gap loan finance for capital expenditure and working capital to assist with the growth and development of businesses. The loans will typically be unsecured and will range from £15,000 to £150,000. The Small Loan Fund has a total of £27m to invest.
Northstar Equity Investors, in conjunction with NEL, are responsible for managing the Equity Fund, with a total of £48m available to support larger expansion plans. The Fund will make equity based investments, including mezzanine finance from £100,000 to £2m and will support a range of activities including growth, capital expenditure and some larger start-up ventures.
James Newman, chairman of Finance Yorkshire, said: “The fund managers we have chosen are some of the best in the country in delivering this kind of finance to businesses.
“They are extremely knowledgeable and experienced in this field and we are pleased to have them on board.”
“The fund managers will also be working closely with other public and private sector funders in Yorkshire, such as the banks, private investors and business angel groups, as well as financial and professional intermediaries, to assist SMEs to grow and develop here in Yorkshire.”
