JOB losses look certain at Merseyside Special Investment Fund (MSIF) following its failed bid to run the new North West Business Loan Fund.
However, the company insists it will continue and says it has £5m to invest through its legacy fund.
MSIF, though its Alliance Fund Managers (AFM) arm, had put in a bid to run the £35m fund, part of the £185m European-funded North West Fund (NWF).
AFM, which employs 19 people in Liverpool city centre, has been managing the region’s interim and transitional loan funds for the region’s small and medium-sized firms.
However, the contract went to North East-based FW Capital.
MSIF chairman Michael Hulme said: “Obviously this is very disappointing for all at MSIF, and most particularly the staff of AFM.
“It is poor reward for having been so successful during our primary rounds of investment and then very supportive of the Northwest Development Agency (NWDA) by providing much expertise in addition to our managing of the interim loan funds.
“This has frankly been time-consuming over the last two years, during which we have worked very closely with the NWDA to get the interim funds invested and bridge the finance gap during the banking crisis.
“Let us be quite clear, this is a major blow to AFM and to the wider professional business services community on Merseyside.
“However, we should remember that MSIF itself will have very considerable funds to invest within Merseyside over the coming years. We now need to restructure to continue to ensure the region receives maximum benefit.”
AFM chief operating office Lisa Greenhalgh said this week’s decision would have a “huge impact” on the business. She added: “It is inevitable that jobs will be lost, surely something which goes against the whole ethos of the Venture Capital Loan Fund.
“Over the last 14 years, we have successfully managed the entire suite of MSIF funds, a pioneering model which has been replicated all over Europe.
“To say we are surprised by this decision would be an understatement. Businesses across the region need funding now, and we would have been in the position to provide that to them seamlessly.”
