ALMOST 40 fund managers from across the UK have bid to run four new venture capital loan funds for the North West.

The Northwest Development Agency (NWDA) has announced that the £184m Northwest Venture Capital Loan Fund (VCLF) has received 39 expressions of interest. These are likely to include Liverpool-based Alliance Fund Managers (AFM) and Yorkshire Fund Managers (YFM) who are currently operating the £10m interim VCLF.

When the VCLF is fully up and running later this year it will include a development capital fund, a venture capital fund, a loan fund and a priority sector growth fund.

The NWDA and the European Regional Development Fund (ERDF)  have set up a new company – NW Business Finance (NWBF) – to oversee the selection of the fund managers.

Around 40% of the overall fund has been ring-fenced for the Liverpool city region which would mean local firms would benefit from a £70m pot.
It is believed AFM, based at Cunard Building in Liverpool city centre, will bid to run the loan fund.

It is currently in control of the £4m interim loan fund from which it has already completed three deals.

The NWDA says VCLF finance is available now to businesses in the North West through the interim funding pot and they can apply for this through Business Link Northwest.

The interim VCLF currently has 37 applications under active review totalling £10m, of which a number are close to contract stage.
It’s first investment is £300,000 to a software company that is to set up home at the Daresbury Science and Innovation Campus.

Lord Daresbury has been appointed as the chairman of NWBF.

He is already chairman of several companies including, AIM-listed Nasstar, Stellar Diamonds, Mallett and Aintree Racecourse.

He said: “I am delighted to take on this important role for what will be one of the most important funding support streams available in the region.
“Venture capital and loan funding of this type is vital for the growth of our businesses and our economy.”