Published: Mar 02, 2011
Focus:
Growth Capital
Maven to manage the SLF, supporting Scottish growth and exporting businesses
Maven Capital Partners UK LLP (“Maven”) is delighted to announce its selection by the Scottish Investment Bank (”SIB”) as fund manager of the Scottish Loan Fund (“SLF”). £55 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 £1 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 £250k and £5 million of mezzanine loans, though the great majority of loans will be for less than £2 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. 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.
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 £30 million in Scotland since 2007. Businesses seeking further information about their eligibility for the SLF can call the SLF Helpline on 0844 573 8460 or contact Maven directly via enquiries@mavencp.com.
Andrew Craig, Partner at Maven, Glasgow said: “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.”
Scottish Enterprise Chief Executive Lena Wilson said: “It is extremely rewarding and exciting to see the Scottish Loan Fund ready for business after many months of hard work competitively procuring a high quality fund manager. The fund will complement the Scottish Investment Bank's existing equity finance funds by supporting established growth and exporting businesses as they continue to experience difficulty in raising finance in the current economic climate."
For further information contact:
Andrew Craig, andrew.craig@mavencp.com and +44 (0)141 306 7400 or visit www.mavencp.com
Aileen Hotchkiss, Scottish Enterprise press office: 0141 228 2848/07796 121565.
