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09 December 2011

The North West Fund for Development Capital launches MEZZ finance to help growing businesses

Press Release 9th December 2011

Transforming small businesses  

The North West Fund for Development Capital, managed byYFM Equity Partners, is delighted to announce the launch of its new mezzanine finance product MEZZ to help growing businesses in the North West that require up to £2m of finance.

The MEZZ product from YFM Equity Partners is especially suitable for businesses that need more finance than their bank will provide to grow their business but do not want to raise traditional equity finance. The product was designed with the particular needs of North West businesses in mind after extensive consultation with local business advisors and CEOs of small businesses throughout the region.

The £45m North West Fund for Development Capital is one of six specialist funds that make up The North West Fund, a £185m Investment Fund available for SMEs based in, or relocating to, the North West of England. The North West Fund is financed by the European Regional Development Fund (ERDF) and the European Investment Bank (EIB)

The new MEZZ product fills a gap in the market for a finance solution that is transparent and easily understandable - a loan with a small equity option.  The MEZZ product will suit businesses looking to finance their expansion plans, raise money for capital expenditure, to develop new markets, recruit new staff or indeed to fund every-day cash flow needs.

Joseph Bergin, Head of YFM Equity Partners for the North West says:

"We believe that the new MEZZ product can meet the cash needs of business owners. We understand how frustrating it is for businesses in these challenging economic times who are struggling to secure finance. Our product gives them the benefits of an injection of new funding without them having to give up a large shareholding".  

He added: "We have the right product at the right time to help the North West's hard working businesses grow. Our North West team is dedicated to working with management to create transformational growth and success across a broad range of business sectors. At YFM Equity Partners we have been doing it for almost 30 years and have a current portfolio of over 200 companies throughout the UK". 

Key features of MEZZ:

  • Available to companies more than 5 years old with annual profits greater than £250k, based in the North West
  • Minimum investment is £250k and maximum is £2m.
  • The investmentwill be in the form of a loan note with an option to acquire up to 10% of the equity.  
  • The loan has a fixed interest rate and a repayment profile of up to 7 years.

MEZZ will sit alongside YFM Equity Partners existing development capital product EQUITY, which is suitable for younger fast growing businesses looking for investment of up to £2m.


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