£10m fund for UK’s small and medium businesses announced
Enact to offer investment opportunities to EIS-eligible companies facing financial and strategic issues
Private equity house Endless LLP has today announced the launch of a £10m fund, Enact, targeted at helping Britain’s small and medium-sized businesses to secure investment.
Backed by leading investors, the fund will benefit from the Enterprise Investment Scheme (EIS), providing 30% tax relief and capital gains tax relief to those that invest.
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The fund is available to EIS-eligible businesses of 250 employees or less who have a “robust business model” but are struggling to raise finance, or have problems with operations or strategies.
Looking to bridge the “funding gap” in the small business market, it will seek to invest up to £2m of equity into individual companies operating in any sector or area, providing they meet the qualifying criteria for EIS investments and require a “hands-on” investment approach.
The fund also incorporates an advisory board which includes former HSBC business advisor Wayne Bownser, and retail entrepreneur Tim Whitworth, who co-founded fashion brand Republic and successfully exited in 2010.
Founded in 2005, Endless aims to “transform the fortunes of UK companies” and operates an exclusive, invite only investor base.
Until today, the investment firm has only ever focused on mid-market businesses with turnover in excess of £50m, but it now intends to extend its expertise to small and medium-sized companies.
Garry Wilson, managing partner of Endless, commented:
“Enact represents a natural expansion of the Endless investment offering. Whilst our current funds continue to focus on the mid-market, we are very excited about extending our reach to finding the hidden gems of the smaller business market, particularly given the absence of funding for these companies.
“Our investment track record and access to such a sophisticated and talented network of investors truly makes Enact a unique proposition in a market desperate for proactive and supportive investment.”