Maven Capital Partners has been selected as fund manager of the Scottish Loan Fund (SLF). Some GBP55 million of public sector funding from the Scottish Government, Scottish Enterprise, Highlands & Islands Enterprise and the European Regional Development Fund (ERDF) has been committed to cornerstone the SLF, with additional private sector commitments under discussion which have the potential to increase the size of the fund.
The SLF has been established to meet the current demand for finance for Small-to-Medium sized Enterprises (SMEs), particularly among the growth and exporting businesses that can contribute to Scotland’s economic development. Research undertaken has shown that many viable and dynamic firms, with strong business plans, innovative products and highly capable management teams, are struggling to access the funding that will allow them to grow and develop their businesses.
The SLF will target businesses with an established operational trading base in Scotland and an annual turnover of more than GBP1 million. Applicant businesses should have sustainable operating profits, positive cash generation and operate in a growth and/or export market. The level of funding available to each SME will be between GBP250k and GBP5 million of mezzanine loans, though the great majority of loans will be for less than GBP2 million. There is no sector bias, but the fund is prohibited from lending in respect of certain sectoral activities due to ERDF rules.
Glasgow-based Maven is an independent private equity fund manager, established in June 2009 following a management buyout by the senior executives of global investment house Aberdeen Asset Management. Maven is one of the most active SME investors in the UK and has a demonstrable track record of investing in and supporting Scottish businesses, having invested in excess of GBP30 million in Scotland since 2007. With existing offices in Glasgow and Aberdeen, and a new office due to open shortly in Edinburgh, the team at Maven is well placed to provide the necessary support both in terms of the initial investment process and the ongoing support for SLF portfolio companies. Maven is committed to expanding its reach across the whole of Scotland and will shortly appoint a representative for the Highlands and Islands region, to help ensure optimal coverage for the new fund.
Andrew Craig (pictured), Partner at Maven, Glasgow says: “As one of the UK’s most experienced and active private equity fund managers and with many years’ experience of investing in and supporting UK SMEs, the team at Maven is delighted to be working with the Scottish Investment Bank to deliver the objectives of the SLF. Given the challenging conditions for the economy, there is a clear need for this type of funding and our current Scottish based investment team is very much open for business and looking forward to working in partnership alongside Scottish SMEs.”
