Marwyn, an investment and advisory group, is launching an active investment fund aimed at businesses suffering depressed valuations caused by severely constrained access to capital.
Marwyn, an investment and advisory group, is launching an active investment fund aimed at businesses suffering depressed valuations caused by severely constrained access to capital.
The Marwyn Alternative Capital Fund will provide convertible debt and structured equity to otherwise sound companies that are experiencing short-term liquidity or refinancing problems. The focus will be on European small to mid-cap public companies with an enterprise value of up to GBP1bn.
Marwyn will work with Royal Bank of Scotland to provide alternative financing to hard pressed small and mid-cap companies as part of RBS’s wider initiatives to boost lending to the sector.
The fund will be chaired by Sir Nigel Rudd. Jonathan Chevenix-Trench, former chairman and chief executive officer of Morgan Stanley International, will also be on the board.
Marwyn is looking to raise up to GBP500m in a number of tranches over the lifetime of the fund. The fund is scheduled to launch on 20 July 2009 with a listing on the Specialist Fund Market of the London Stock Exchange.
Mark Watts (pictured), managing partner of Marwyn, says: ‘This fund will invest in companies in the hardest hit and most neglected part of the market. There are many good businesses, often with hard pressed management teams, that have seen their advisory and financing infrastructure disappear as the equity and debt markets have contracted.’
Andrew Harrison, head of UK corporate leverage finance at RBS, adds: ‘We are determined to explore every avenue to help our customers through these difficult times. Marwyn has long experience of working with management and equity investors to deliver financing solutions and sustainable operational improvements.’
