News
25/10/2010 MSIF Launches New Investment Fund
15/10/2010 Small Loans for Business Fund Invests in Diva Beauty Academy
12/10/2010 MSIF Success Repays £27m to Mersey Pension Fund
04/08/2010 MSIF Appoints a New Chairman
02/08/2010 Acquisition of Vitaflo by Nestlé
06/04/2010 Northwest Interim Loan Fund completes its first loans
MSIF Launches New Investment Fund
Merseyside Special Investment Fund (MSIF) has launched a new fund that is now ready to invest in local businesses through its in house fund management team Alliance Fund Managers (AFM).
The Merseyside Loan and Equity Fund as it will be known, is made up of so called ‘evergreen’ money - capital that has returned to MSIF from repayment and realisations from investments made by funds which launched in 1996 and finished investing in 2008. The new Fund will invest over £25m over the next five years in established small to medium enterprises based in Merseyside. Individual investments will range in size from £50k to £2m in the form of loan, mezzanine and equity finance.
Currently the Fund stands at around £10m with a further £15m estimated to be available through additional returning capital.
In recent years MSIF has been using returns on investment to firstly repay the private sector and then steadily create a legacy fund. MSIF recently fully repaid its last significant investor so that now returning capital will go directly into the new Fund.
Chief Operating Officer Lisa Greenhalgh said: “We are delighted to announce the launch of the new Fund. We have been working very hard since MSIF’s previous funds closed for investment to put the Merseyside Loan and Equity Fund in place. It is fantastic that not only has MSIF achieved all of its investment targets and social objectives, but has now reached its ultimate goal of creating a stand alone successor fund which is ready to again invest in and support local businesses.
Despite the recent changes within our organisation we have retained a core team of key staff including experienced investors who will oversee the investment decisions for the Investment Fund.” Chairman Andy Rigby added: “This is a great achievement for MSIF and AFM and good news for local businesses. Funding has been very difficult to secure in recent times which coupled with the economic downturn has hit businesses hard. Now MSIF can continue what it was set up to do – provide a much needed alternative source of finance to the region’s businesses which will in turn strengthen the local economy.”
MSIF was a unique concept when it was launched in 1996. The organisation was set up to hold the European Regional Development Fund’s (ERDF) contribution to the investment funds as part of the Merseyside Objective One Programme, an EU initiative to help under-performing regions throughout the European Union to improve their economic performance. The ERDF funds were matched with private sector monies from Barclays, the Mersey Pension Fund and the Cooperative Bank.
The success of MSIF has seen the model replicated in other parts of the UK and across Europe. During the 12 years MSIF has been established it has invested over £134m in 1,356 businesses, creating and preserving 13,511 jobs and bringing in excess of £245m private sector investment to the region.
Small Loans for Business Fund Invests in Diva Beauty Academy
15th October 2010
Diva Beauty Academy , based in Knowsley, has raised a funding package which includes a loan from Alliance Fund Managers (AFM) through the Merseyside Small Loans for Business Fund together with support from Knowsley Council’s Fresh Start Project and The Prince’s Trust. The money has been used to buy equipment and stock including the Garra fish used for the salon’s revolutionary fish pedicure.
AFM investment manager Chris Walters said: “We are really pleased to be supporting this business. The range of treatments being offered is really diverse and in addition the business will offer training courses to students wanting to work in the beauty industry.
“Whilst the fish pedicure is popular with celebrities and is widely available in London it is a unique offering for this area and I think it will be a big hit. Merseyside girls, and indeed boys, are renowned for the amount of time and money they spend on grooming and I am sure Diva will do very well.
“Donna is very experienced in her trade and she has worked very hard to start up her business – I think she will be very successful.”
The Northwest Small Loans for Business Fund is being managed by Alliance Fund Managers (AFM) in Merseyside, and is supported by the ERDF and NWDA.
MSIF Success Repays £27m to Mersey Pension Fund
12th October 2010
Alliance Fund Managers (AFM) the fund manager for Merseyside Special Investment Fund (MSIF) has announced that it has fully repaid the last private sector loan from its most recent round of MSIF Loan and Equity Funds.
Mersey Pension Fund provided a loan facility of £20m to Merseyside Special Investment Venture Fund 3 Limited Partnership which was launched in 2001. This has now been fully repaid with interest following several recent successful exits within the Fund.
MSIF was launched in 1996 and was set up with money from the European Regional Development Fund (ERDF) and matched private sector funding from Barclays and Mersey Pension Fund. Following the success of the preliminary funds more money was raised with the most recent funds launched in 2002 providing loan, mezzanine and equity funding to SMEs throughout Merseyside through the £40m Venture Fund, £20m Mezzanine Fund and £20m Small Firms Fund.
These funds closed for investment in December 2008 and AFM is now managing the portfolio of 225 businesses on behalf of MSIF.
Lisa Greenhalgh, AFM’s Chief Operating Officer said: “MSIF’s target was to make a positive, long-term impact on the region’s economy and AFM has done this by making sensible, commercial investment decisions. There was a fine balance to strike between ensuring all MSIF’s social objectives were met but at the same time making commercially astute investments to enable MSIF to continue investing after the ERDF money stopped and the private sector had been repaid. We believe we have done this and now all money from future repayments and investment realisations will go directly into the legacy fund which will provide funds in excess of £25m for further investment in the region. ”
Andy Rigby, MSIF’s Chairman added: “MSIF was never a short term project. During the 12 years MSIF has been established it has invested over £134m in 1,356 businesses, creating and preserving 13,511 jobs and bringing in excess of £245m private sector investment to the region.
“I would like to take this opportunity to thank all our private sector investors for working with us to help create a thriving business community in the region. Our focus is now on adding value to our portfolio of investments to ensure that the maximum amount is achieved to continue reinvestment in businesses across Merseyside.”
Paddy Dowdall, Investment Manager, at Mersey Pension Fund said: “The loan to MSIF has enabled investment in businesses across Merseyside and helped to regenerate the region whilst providing a good return for Mersey Pension Fund. We are delighted to have worked with the team at MSIF and AFM over the years and wish them all the best for the future.”
MSIF Appoints a New Chairman
2nd August 2010
Merseyside Special Investment Fund (MSIF) has appointed a new chairman to its board. Andy Rigby who was previously a non executive director of Alliance Fund Managers, MSIF’s in-house fund management company, will take over from Professor Michael Hulme.
Andy has a wealth of experience of investing in SMEs throughout the North West. He was a founder member of the Manchester office transaction team of NatWest Ventures which at the time was one of the most active venture capital houses in the North West.
Professor Hulme had originally intended to step down as chairman in 2008 following the successful investment of all MSIF’s funds but stayed on to assist with the formation of the MSIF Legacy Funds. The foundations for this Fund, which currently stands at around £5m, are now in place and it is hoped it will be in a position to begin investing towards the end of this year.
Mr Rigby said: “I’ve been involved with MSIF for many years now and I’m delighted to be appointed as chairman. The main objective for me now is to ensure that once the Legacy Fund is launched that it is invested wisely to ensure money keeps coming back into the pot. MSIF began at a time when it was difficult to start or grow a business. We have now come full circle and once more it is a tough time for SMEs. It is a testament to the good work of the team at MSIF and AFM that MSIF has made such good returns on investment through its original funds that it is now in a position to again assist the region’s SMEs and boost the local economy.
“I’d like to take this opportunity on behalf of everyone at MSIF and AFM to thank Michael for all his hard work and dedication. He has been a fantastic ambassador for the company and we wish him all the best for the future.”
Acquisition of Vitaflo by Nestlé
2nd August 2010
Vitaflo International Holdings Limited, a Liverpool-based company in which MSIF has had a longstanding investment, today announced that Nestlé has completed the acquisition of the company for an undisclosed sum.
Vitaflo is a global company headquartered at the Brunswick Business Park that develops and commercialises food for special medical purposes. Vitaflo’s product portfolio focuses on disease-specific nutrition, including inborn errors of metabolism and disease-related malnutrition.
Merseyside Special Investment Fund (MSIF) has been involved with Vitaflo since its inception. Vitaflo was founded by Directors Tony Partington, Bill Macnab and Maura O’Donnell in 1997 with the support of an equity and mezzanine investment from MSIF. When the company was refinanced in 2008, the company secured further finance from Alliance Fund Managers (AFM) through the MSIF Venture Fund.
With the support of MSIF and through the stewardship of the executive management team, the company has enjoyed extraordinary revenue growth and is a major employer in Liverpool. While the company has been highly successful, the Board of Vitaflo believes that through its partnership with Nestlé the company will accelerate its growth plans.
With its global presence and strong existing medical nutrition platform, Nestlé will assist the company with its plans to grow the business through further expansion into emerging markets and development of new products. Vitaflo will continue to operate as a stand-alone business segment within the Nestlé Group and the existing Vitaflo executive management team and employees will remain with the business.
Vitaflo Managing Director, Ken McLachlan, commented: “We are delighted to have attracted a partner of the quality of Nestlé to support the next stage of the development of Vitaflo. Our partnership with Nestlé will facilitate further exciting geographic expansion and product development. We look forward to working with Nestlé to grow the Vitaflo business in the years to come.”
Marion Savill, AFM’s Portfolio Director said: “Vitaflo is a huge success story for Merseyside and MSIF. It has grown organically from a small business with a great product and team to a multinational company which has created numerous jobs. I’m sure the company will continue to prosper and all at AFM and MSIF wish them every success for the future.”
Vitaflo Director of R&D and Product Development, Maura O’Donnell, commented: “This partnership with Nestlé is fantastic for Vitaflo. It represents a great vote of confidence in Vitaflo’s existing product portfolio as well as the R&D and product development capabilities based in Liverpool. The future is bright for the Vitaflo business, its staff and Liverpool as a centre of excellence for the development of products for inborn errors of metabolism and disease related malnutrition.”
Mrs. O’Donnell added on behalf of the founding Directors: “We would like to take this opportunity to thank AFM and MSIF for their commitment to and support of Vitaflo since 1997.”
Evercore Partners acted as financial adviser and DWF acted as legal adviser to Vitaflo. MSIF is managed by Alliance Fund Managers and DLA Piper acted as legal advisor to MSIF.
For more information about Vitaflo, please visit www.vitaflo.co.uk
Northwest Interim Loan Fund completes its first loans
£225k in loans issued to two growing companies
£10m Interim VCLF deals under review with several close to contract.
The Northwest Regional Development Agency (NWDA) and the European Regional Development Fund (ERDF) is delighted to announce the first Interim Loan awards just days after the first Interim equity investment was announced.
Just last week the NWDA and ERDF announced the first equity investment of £300k alongside the new structure for the long term Northwest Venture Capital & Loan Fund (VLCF). This week the first Interim Loans have been issued through fund managers AFM, and the NWDA is urging businesses not to wait for the long term Northwest VLCF but to apply now for VCLF funding.
The first Interim Loan of £100k has been awarded to Sovex Ltd. Sovex is one of the UK’s leading conveyor manufacturers. The company based in Prenton on the Wirral boasts blue-chip clients including Parcelforce Worldwide, DHL, andToys R Us. The company also has an operation in Gainsborough and in total employs almost 100 people. The company manufactures some of the most significant conveyor technical developments in the UK.
The second Interim Loan of £125k has been made to SHOKK Ltd. SHOKK Ltd is a global company that specialises in physical activity, health and fitness for the youth sector. The company has firmly established itself as the number one youth fitness brand. With over 200 facilities worldwide, more than 175, 000 young people are now involved with the concept.
SHOKK is extremely passionate about increasing the activity levels of young people across the world. Supplying a full range of specialist equipment, training and services the company has a complete offering to suit the needs of young people aged between five and eighteen.
The company, with a Northwest base in Trafford, is growing and are now taking larger enquiries and orders as their reputation increases in the UK and internationally. Plans are also in place to roll out more facilities under the successful SHOKK ‘Youth Gym’ brand and franchise model. The company requires funding to meet the growing demand and the associated working capital for stock requirements. The Interim Loan will help SHOKK to continue their high growth strategy and long term development plan, with an additional £125k loan under offer with the company.
Robert Hough, Chairman of Northwest Regional Development Agency (NWDA), said: “I am delighted to be announcing the first loans from the Interim VCLF. These loans will make a huge difference to these companies and will help them to ease cash flow and help them to grow here in the Northwest. We have venture capital, equity and loan funding in place now to help and I would welcome more businesses getting in touch and applying for this support.”
The Interim VCLF, managed by YFM and AFM, has received a high level of enquiries.
Businesses interested in VCLF funding should contact Business Link Northwest.
