Maven Capital Partners has been selected as sole fund manager of the new Greater Manchester Loan Fund (GMLF).
The fund has been created to help address the market requirement for finance from small and medium sized enterprises (SMEs) in the Greater Manchester area.
Cornerstone public sector commitment comes from The Regional Growth Fund and the Association of Greater Manchester Authorities.
The fund has the ability to lend up to GBP20m in aggregate, investing in established businesses which have existing cash flows but are currently constrained through being over-geared or under-capitalised. The focus will be on providing funding packages of between GBP100,000 and GBP500,000 to eligible SMEs, in order to help them deliver growth and ultimately achieve their business plans.
Maven is an independent private equity manager, established in June 2009 following a management buyout from global investment house Aberdeen Asset Management. Since 2009, Maven has also been appointed as manager of two similar funds supporting ambitious SMEs in specific geographic territories, the GBP113m Scottish Loan Fund and the GBP35m UK Government backed Capital for Enterprise Fund A.
Ryan Bevington, investment director at Maven Capital Partners, says: “Access to flexible finance remains a major challenge for SMEs looking to maximise their growth potential. The Greater Manchester Loan Fund will offer valuable and welcome support to ambitious local businesses. Maven has a long standing presence in Manchester and a track record of successful investment in the North West, and has seen at first hand the difficulties SMEs are experiencing when seeking the funding that will help them exploit market opportunities.”
Lord Peter Smith, leader of Wigan Council and chair of the Greater Manchester Combined Authority, says: “Across Greater Manchester, small and medium-sized businesses all agree that access to finance is hindering their growth. If we can solve this problem, businesses will be able to invest, create and protect jobs.
“That’s why establishing the Greater Manchester Loan Fund is so important. It will provide companies with the funds they need to expand. It’s an exciting initiative and shows our commitment to supporting economic growth. I’m delighted we will be working with Maven Capital Partners on this important project.”
