Jane Lambert’s Post

The Midlands Engine Investment Fund (#MEIFII) is launching its second fund, with £400m being made available to support business growth over the next five years. The money follows on from a £300m fund that launched in 2017 and is credited with supporting the creation of 4,300 jobs in the region and bringing along an additional £400m of private sector investment. The new funds are designed to boost the supply and diversity of early-stage finance by providing options to firms that might otherwise be unable to secure investment. Initially £281m has been allocated to five fund managers. Mercia Asset Management PLC, which received an initial allocation of £23m last time, is ultimately responsible for more than £200m. Mercia Asset Management PLC will have £163m for equity deals across the #Midlands, and can deploy up to £5m per deal. Frontier Development Capital, which was acquired by Mercia Asset Management PLC in December 2022, has £44m to loan to West Midlands businesses with an individual limit of £2m, while Maven Capital Partners will manage £46m for the #EastMidlands and #SouthEastMidlands. BCRS Business Loans and First Enterprise - Enterprise Loans will continue to manage the small business loans, and will each have £14m to deploy in loans up to £100,000. https://lnkd.in/eD7_nmaE

The British Business Bank has launched its new Northern Powerhouse Investment Fund (NPIF) II, a £660m fund set to cover the entire North of England. Providing loans from £25k to £2m and equity investment up to £5m, the Fund will continue investing into companies operating within the North West, Yorkshire and the Humber and Tees Valley. It is now expanded to include the whole of the North East enabling businesses across the whole of the North to access the Fund to start up, scale up or continue on their growth journey. Nine fund managers have been appointed to manage the Northern Powerhouse Investment Fund II. In the North West, GC Business Finance & River Capital will manage the smaller loans part of the fund (£25,000 to £100,000), FW Capital will be responsible for larger loans (£100,000 to £2m) and Praetura Ventures will manage equity deals (up to £5m). In Yorkshire and the Humber, Mercia will deliver debt finance (£100,000 to £2m), as well as equity finance (up to £5m) to smaller businesses with Business Enterprise Fund (BEF) delivering smaller loans between £25,000 and £100,000. With NPIF II now set to cover the entire North East, NEL Fund Managers Limited (NEL) will provide both smaller loans (£25,000 to £100,000) and debt finance (£100,000 to £2m) to North East businesses with Maven Capital Partners managing equity deals up to £5m. David Foreman, managing partner and co-founder at Praetura Ventures, said: “This is a huge day for us – and hopefully for North West founders. “Today, Praetura and British Business Bank launch the £100m Northern Powerhouse Investment Fund II – Equity North West. “We’ve been working towards this for an insanely long time and we want to make this a real game-changer for companies in the North West of England." Gary Guest, fund director at FW Capital, said: “We can’t wait to get started delivering the fund and driving innovation, growth and job creation in areas where such investment is critical.” Michael Vassallo, investment director of Maven, said: “The North East already has a thriving ecosystem for ambitious companies, and the new fund underscores our commitment to supporting the growth and development of SMEs from Northumberland to Teeside.” Louis Taylor, chief executive of the British Business Bank, said: “The success of the first Northern Powerhouse Investment Fund has proven the instrumental change that access to finance can have for small businesses." The British Business Bank will be holding a roadshow of events for small business finance intermediaries across the region to provide more information about the Fund. Destinations include Newcastle (18th April); Manchester (24th April), Sheffield (30th April). Further dates for roadshow events in Liverpool, Hull, Lancashire, Tees Valley, York, Cheshire, Durham, Cumbria and Northumberland will be announced shortly. https://lnkd.in/eh_JEQ-X

Private Equity: Carried and Promoted Interests Explained 🏆 In deals where assets are funded by private equity, the structure of the equity investment is typically a vehicle that is comprised of investors, or Limited Partners (LPs). These tend to contribute 90-95% of the funds, alongside the fund sponsor, or General Partner (GP) who often contribute 5-10% of capital. The GPs negotiate a more advantageous split of the profits than that of their pro-rata capital invested. This is due to the additional work undertaken to create the fund, find and vet the targets, manage the transaction as well as the ongoing investment. When a GP takes a greater share of the profits than a pro-rata investment, it is called a ‘carried interest’. Typically, in real estate deals using the same GP/LP structure, the name for this concept is a ‘promoted interest’. The Purpose of Carried and Promoted Interest: PE sponsors, or GPs, are compensated in two ways with regard to their investment funds. The first is the management fee which is based on the LP’s assets under management by the sponsor firm. This is typically around 2% and covers or contributes to the administrative costs of the sponsor firm. The carried interest (15-20%) is the sponsor’s compensation for finding the transaction, negotiating the terms, signing on to the debt, and managing the transaction until disposition. In real estate, the promoted interest is typically 20-30%. The carried or promoted interest is calculated on the profits of the deal after the debt has been paid back and any preferred returns have been achieved. Promoted Interest: The concept behind promoted interest or a ‘promote’ as it is referred to in real estate jargon is similar but the mechanics of the waterfall are a little different. A promoted interest is an advance given to the GP on the LP’s profit after the initial waterfall payments of the preferred return and capital investments are made. The remaining profits would be split according to the pro-rata capital investments, but the promoted interest allows the GP to take a negotiated percentage of the LP’s stake as well. Key Learning Points: • Carried and promoted interest arrangements give the GP a greater split of the profits than their pro-rata capital investment • PE firms usually couple this carried interest with a management fee to manage the invested funds of the limited partners • To entice LPs into funds or transactions, the GP will offer the LP a preferred return or hurdle rate that must be achieved before the GP can begin receiving a return • A carried interest is calculated on the remaining profits after achieving the preferred return or hurdle • Promoted interests work in a similar way but the promote is calculated as a percentage of the LP’s share of the profits after the preferred return or hurdle Download our free private equity resume template: https://shorturl.at/WzAEj

The British Business Bank has launched its £400m Midlands Engine Investment Fund II #MEIFII, unlocking additional funding to help smaller businesses prosper and thrive. The fund will drive sustainable economic growth by supporting new and growing businesses across the whole of the #Midlands, through investment strategies that best meet the needs of these firms. It includes a range of finance options with loans from £25,000 to £2 million and equity investments up to £5 million to help SMEs start up, scale up, or stay ahead. British Business Bank CEO Louis Taylor said: “Small businesses are at the heart of the #Midlands’ economy. Since launching in 2017, the first Midlands Engine Investment Fund #MEIF has so far created more than 4,000 jobs across the region by backing 739 smaller businesses. “The first Midlands Engine Investment Fund #MEIF provided a blueprint for how we can support entrepreneurs and founders, whoever they are and wherever they are in the region, to access the funds and support they need. This new fund will allow us to continue supporting business owners across the Midlands, whether they’re at the start of their journey or are already running an established firm. “Promoting growth by ensuring entrepreneurs can access the finance they need regardless of where and who they are is one of the Bank’s strategic objectives, and vital to unlocking the full potential of the UK’s smaller businesses.” The Midlands Engine Investment Fund II #MEIFII aims to build on the success of the inaugural Midlands Engine Investment Fund #MEIF, a £300m fund which has already supported almost 300 smaller businesses in the #EastMidlands and #SouthEastMidlands since its launch in 2017. The new fund will help hundreds more businesses to achieve their potential and further increase the supply and diversity of early-stage finance by providing options to firms that might otherwise be unable to secure investment. Funding is designed to help businesses with activities including expansion, product or service innovation, new processes, skills development, and capital equipment. Three fund managers have been appointed to manage the fund in the #EastMidlands and #SouthEastMidlands. First Enterprise - Enterprise Loans Loans will manage the smaller loans part of the fund (£25,000 to £100,000), Maven Capital Partners will be responsible for larger loans (£100,000 to £2 million), and Mercia Asset Management PLC will manage equity deals (up to £5 million).

Small UK businesses have a variety of investment sources available, depending on their needs and stage of development. Here’s a look at some of the most common options: #investment #funding

Looking for funding options? Equity investment might be the answer. Find out what it is and how it can benefit your venture in this must-read article by Shaun Fooy, Senior Manager UK Network - North East England & Tees Valley at British Business Bank. Read here: https://lnkd.in/eyGB8f8f #Finance #Startups #Investment

ℹ GLOSSARY 19 – PRIVATE EQUITY INVESTMENT STRATEGIES   Private Equity (PE) firms employ various strategies to acquire, invest in, or provide financing to private companies with the goal of generating substantial returns for their investors. Below are some of the key strategies:   👉 Leveraged Buyouts (LBOs): this strategy involves acquiring a controlling interest in a company using a significant amount of borrowed capital while the acquired company's assets serve as collateral for the debt. LBO is typically used to acquire mature, stable companies with predictable cash flows. The goal is to improve the company's operations and profitability, pay down debt, and then sell the company at a higher value. However, banking regulations in Vietnam at the time of this post do not allow investors to use debt for acquiring private companies, making this LBO strategy inapplicable in Vietnam. 👉 Growth Capital: Growth capital is invested in more mature companies that need funding to expand or restructure operations, enter new markets, or finance a significant acquisition without changing control of the company. PE funds use growth capital to invest in companies with proven business models but require capital for expansion. PE fund may take a minority or majority stake in the company and work closely with management to drive growth. 👉 Distressed or Turnaround Investments: PE firms use this strategy to acquire companies that are struggling due to operational issues, poor management, or financial difficulties. PE funds normally acquire these companies at a discounted price and works to restructure the company's operations, improve its financial health, and sell it for a profit once it stabilizes. 👉 Special Situations: this strategy is about investing in companies undergoing specific events like mergers, acquisitions, spin-offs, or bankruptcy. The PE fund identifies opportunities to profit from these situations by acquiring assets, providing financing, or restructuring the company. 👉 Industry and Sector Focused Strategies: this strategy is founded on the specialisation of the PE firm in a particular industry or sector. Given its deep knowledge and expertise in such sector, the PE firm can identify investment opportunities and build a strong network within the chosen industry and create significant value to the portfolio companies. 👉 Fund of Funds:  A fund of funds strategy involves investing in a portfolio of different PE funds rather than directly in companies. PE firms or institutional investors use this strategy to diversify their investments across multiple funds, reducing risk and gaining exposure to a variety of PE strategies. It's important to note that many PE firms combine multiple strategies to diversify their investments and manage risk.

Scotiabank partnership will create the first majority Indigenous-owned investment dealer in Canada. Cedar Leaf Capital👇 ...through an agreement with two Indigenous development corporations and one First Nation. From the article: The dealer would initially be operated by Scotiabank, and majority-owned by the: • Squamish Nation’s Nch’ḵay̓ Development Limited Partnership in British Columbia, • the English River First Nation’s Des Nedhe Financial LP in Saskatchewan and •  the Chippewas of Rama First Nation in Ontario. "The three Indigenous shareholders would own a combined 70 per cent of Cedar Leaf Capital, or about 23 per cent each. At the outset, Scotiabank plans to provide the infrastructure and tools to develop the investment dealer’s operations. Once Cedar Leaf Capital has fully built its own operations, Scotiabank would reduce its interest in the dealer. Cedar Leaf Capital has tapped Indigenous banking veteran Clint Davis to take on the lead role as CEO. The investment dealer intends to join syndicates on new bond offerings, with the goal of eventually leading on these deals. It would also seek to partner with organizations to help them meet their reconciliation commitments." https://lnkd.in/gnWjt2ni

Argentina DEFAULT 2024. Sergio Massa to work for US investment fund Greylock Capital Management Sergio Massa seems to start in March heading in a different direction. He will work on 10 projects for Greylock Capital Management, a US investment fund that played an active role in the 2020 restructuring the country’s defaults debt. Sources from Massa’s party confirmed last week that the former economic minister and unsuccessful Unión por la Patria presidential candidate will be working for Greylock Capital, though not on topics linked to Argentina. “He works for Greylock but he can’t work in Argentina. He was assigned 10 projects dealing with the real economy. In order to comply with the public ethics law, he could almost not work anywhere in the country,” they argued. Rumor's of Massa working for an investment fund were already circulating in late November 2023, after he lost the presidential race. According to information published by Forbes magazine at the time, the most interested party was “Renaissance Fund” – a subsidiary of Greylock Capital Management, which is headed by its founding partner Hans Humes, a veteran Argentina investor. By then, Humes, CEO of Greylock, mentioned the now former economy minister and stated: “We believe he would be a great addition for us. We know other institutions have been talking to him about future opportunities. But given the unique structure of our fund, we’re sure it’s the optimum adjustment for someone with his skills.” The declarations of a chains of DEFAULTs in Argentina provinces is the indication that the economy would crash on next weeks. The hurry to hire the former economic minister Sergio Massa would provide the accurate details and best strategies to hedge founds in the USA. But the delicate part is the total lost of the invested money in scenarios of sovereign debts restructuration's with strong capital cut. In the debts restructuration's of 2005 and 2010 private investors lost the 90% of the invested capital in Argentina. To wait and see dollarizing portfolios is the best safe strategy for Argentina. The country is facing a political and social turmoil caused by the broke central bank BCRA and the lack of enough dollars for the imports and payments of foreign suppliers. Such situations of insolvency triggers the defaults the unemployment and foreclosure of local companies facing delinquencies and bankruptcy. Yes the same stories from the past economic DEFAULT crises repeats again in Argentina.

Capital raising is the process of securing funding for real estate projects. Read the full article https://lttr.ai/AUNrk #RealEstateProjects #RaisingCapital #StepByStepGuide #RaiseMoney #Invest #FederalHousingAdministration #ApplicantSPrimaryResidence #GenerationalWealthCreation #GenerateInterestPayments #NegotiateLowerPrices