Member Article

Private equity boost for North East businesses

The North East is set to benefit from a new Enterprise Capital Fund announced this week by the Department for Trade and Industry. North East enterprise agency Entrust is part of the national Seraphim consortium which was named as one of the successful bidders to benefit from the new multi-million pound scheme to boost private equity investment in fast growing small and medium sized businesses in the UK.The Seraphim Fund, led by Greater London Enterprise, has partners across the UK, including Advantage Business Angels in the Midlands, Archangel in Scotland and Entrust covering the North of England.Entrust will act as Seraphim’s Northern ‘gatekeeper’, promoting and coordinating applications from Northern companies seeking growth funding. The fund, which is based in London, will typically invest with Business Angels in rounds of circa £1million. Applicants will need to demonstrate a solid track record of expansion and growth with applications welcomed from companies seeking second or third round funding.Entrust’s Regional Financial Services Manager Bob Marris said: “The launch of the Seraphim Capital Fund is excellent news for North East businesses. Entrust is delighted to play a major role as a partner and Northern gatekeeper for this important co-investment fund, backed by Government. The Seraphim Capital Fund will substantially increase the equity funding available to high growth, early stage companies in the North and help address the sub £2 million equity gap.“Entrust’s part in The Seraphim Capital Fund will complete the range of services available through Regional Financial Services, adding to the successful Ready for Investment Service, Business Angel Network – Investors Forum and the North East Equity Matching Fund. Regional Financial Services Team is dedicated to helping high growth businesses in the North East and can work with businesses to develop their Seraphim Fund investment proposals.The Fund plans to invest over five years starting from September 2006.

This was posted in Bdaily's Members' News section by Ruth Mitchell .