Procurement process commences for long term £184m VCLF for the Northwest

The Northwest Regional Development Agency on behalf of a new holding company Northwest Business Finance Ltd has today released the bidding documents to open up the competitive tender process for companies wishing to be part of one of the largest public sector Venture Capital and Loan Funds in Europe.

The new long term, £184m (€204m) Venture Capital and Loan Fund (VCLF) is a critical element of the NWDA’s finance portfolio. Although the fund has taken longer than anticipated the commencement of the procurement process today will now ensure the fund is operational by the summer.

Steven Broomhead, Chief Executive of the Northwest Regional Development Agency (NWDA), said:

“We know this has been a long process but we are now on track to have our long term VCLF scheme available to business in the Northwest by the summer, and I am delighted that we can now move forward with this vital fund.”

“The new agreed model for VCLF is now in place behind the scenes with the Holding Fund Company now established and members appointed. The procurement process will find our Fund Managers, with the opening of the fund shortly after.”

In the mean time the NWDA has put in place interim Venture Capital and Loan provision. This interim funding is available now, managed by fund managers - YFM and AFM and available through Business Link Northwest. It is vital that we ensure that the message to businesses in the Northwest is that we have funding available now for growth businesses.

The interim Venture Capital & Loan funding is a combination of loan, equity and quasi-equity funding to support business growth. Loans range from £50,000 to £250,000 with Equity and Mezzanine finance available up to £1m.

A new private company called NWBF has been established to oversee the delivery of the new long term VCLF, under the Joint European Resources for Micro to Medium Enterprises Initiative (JEREMIE) in the Northwest.

For more information on Finance for Business please visit  www.nwdabusinessfinance.co.uk