The Future’s bright for MSIF as it raises £7m from a string of successful exits and also signs a further 4 year Start Up Loans contract
MSIF has added around £7m to its own funds through a string of successful exits from previous investments including from its stake in local software company Blue Prism when it recently floated on AIM.
This additional cash means MSIF now has around £30m to invest through all of its currently investing funds. This money will top up MSIF’s Merseyside Loan & Equity Fund, the fund it created in 2009 with returns on investment from its original funds.
In addition, MSIF has been awarded a further 4 year contract to continue to manage the Government-backed Start Up Loans Programme in the region.
MSIF has been delivering the Start Up Loans Programme since the original pilot project three years ago and to date has provided 254 loans totalling £1.7m.
The Start Up Loans Programme provides personal loans of up to £25k to people across the UK that are starting up a business or within the first two years of trading.
Funding is offered at a low interest rate and investees also receive mentoring support and offers from partners such as Regus and PayPal.
MSIF’s COO Lisa Greenhalgh said: “It’s been a great start to the year for us."
“The £7m which has come from returns our previous equity investments increases the cash that we have to invest in larger loan, mezzanine and equity deals."
“We’re also delighted to secure a new four year contract with the Start Up Loans Company which allows us to continue to offer this lower cost finance for those starting their businesses in the next four years."
“It is still quite difficult for new businesses to access finance, particularly for those who don’t have experience and a track record. The Start Up Loans Programme fills that gap."
“New businesses are key to continued economic growth and we are delighted that we have increased our funding offering in this area."
“Several of the businesses we backed through the Start Up Loans Programme have gone on to be very successful and have come back to us for follow-on finance through our other funds to allow them to expand."
“We are also looking at opportunities to raise new funds from other sources to further enhance our offering and ensure MSIF continues as the go-to alternative finance provider in the Liverpool City Region and beyond.”
Since MSIF began investing in 1996 it has invested over £161m in 1,933 businesses, creating or preserving more than 14,600 jobs and bringing in over £296m private sector investment.