28m 124 83m The Debt Fund regional offices staff Direct - - PowerPoint PPT Presentation

124

staff

4

regional offices

£28m

Direct investment

£83m

Impact on regional economy

The Northern Powerhouse Investment Fund “The Debt Fund” £100k to £750k Simon Berry 15/11/2019

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A loan is like your kids or a very

• ld house……

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“A loan needs to be serviced by the surplus cash generated by the businesses primary activities, after meeting all its operating costs”

“This surplus cash needs to come from “trading income/profitability”.

Let us talk briefly about grants and cash expected to be received from further fund raising rounds (equity).

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You approach us for a loan

Are you prepared?

• Historic financials
• Latest current financials

_______________________

• Sales pipeline
• Business Plan/Pitch Deck/IM
• Financial Projections

We undertake our due diligence

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Let us know everything we need to know at the outset

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Our USP’s

Our lending is all about cash flow

• We can use management accounts as

evidence that trading performance has improved since the last Y/E.

• We are happy to look at “projection

led” lending and what the company could afford to borrow if it achieved greater sales/increased EBITDA.

• If we believe that the management

team will achieve the financial projections presented, we generally support.

• We take a different approach to

security, especially the amount of unsupported PG’s that we ask for.

• We can process a loan very quickly

(subject to existing debenture holders!)

Other lenders

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• Other main stream lenders tend to focus
• n historic performance and want to

wait until next years full accounts are available.

• Online and P2P funders, generally do

not undertake the same level of DD on the company/management team that we do.

• Some online and P2P funders adopt a

single approach to the level of PG’s that that they require from all directors working in the business.

What can be funded by the loan?

• Working capital/the debtor book
• Costs of new people till they are

covering their own costs

• Stock
• Fitting out of new labs/Capex
• BD costs
• New production lines/New income

areas*

• Product development
• Most things as long as purpose legal!

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How are the loans structured?

• Based on how the cash flow forecast

indicates should be the structure.

• Capital holiday may be appropriate at

the outset (3/6/9 or 12 months).

• Monthly or quarterly payments.
• Final date for the final payment on

any of our loans is Feb 2025. Therefore, around five year maximum at present.

• We can incorporate tranches if all the

loan is not required at the outset I.E. £300k initially and another £200k within 6 months.

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What security is required?

• We do not have a “one fits all” approach

to security. Every transaction is different.

• We do however always take a debenture.
• We do take unsupported PG’s on a case

by case basis. We rarely take “joint & several PG’s”. More likely to be individual and frequently pro-rata to share stake.

• We recognise the stake and funds injected

by directors working within the business

• Unless a broad management team, Key

Man life policies can be required.

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What are the loans going to cost?

• All fixed rate (Not over Base Rate).
• Between 6-12% Fixed. Interest

calculated daily and debited monthly.

• Rate based on combination of

current company credit rating, latest financials and security.

• This year average interest rate

circa 7.9 to 8.25%

• Arrangement Fee 1.5%

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Two of the companies we have assisted at Daresbury

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The FW Team in the room

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Thank you

Simon Berry 07879 691478 simon.berry@fwcapital.co.uk Carol Bolland 07881 958582 Carol.Bolland@fwcapital.co.uk Any questions not already answered?

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Types of Investment & Attracting Investment Dean Cox Maven Capital Partners

MAVEN CAPITAL OVERVIEW

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£660 million

Funds Under Management & Available to Invest

Nationwide Coverage

London, Birmingham, Manchester, Glasgow, Edinburgh, Aberdeen, Bristol, Nottingham, Preston, Durham and Newcastle Invested across five VCTs

£211 million

Investment and Support Professionals across the UK

87

Including

£316m

Regional fund mandates for investment in SMEs

Information as at 31 March 2019

MAVEN’S CLIENT FUNDS

3 INVESTOR PARTNERS

• Over 250 high net worth individuals, family offices and fund managers
• Typically invest £2- £5m per transaction

VENTURE CAPITAL TRUSTS

• Five private equity companies listed on the London Stock Exchange
• Subject to VCT rules so focused on development capital opportunities

MAVEN BUYOUT FUND

MAVEN UK REGIONAL BUYOUT FUND

• Dedicated institutional fund focusing on MBO opportunities across the UK
• Sweet spot of between £5m and £15m of equity per transaction

REGIONAL DEVELOPMENT FUNDS

• Providing equity & debt growth capital funding to SMEs in certain regions

NORTHERN POWERHOUSE STATS

• Funds invested - £26.5m
• Recipients of funds – 42 NPIF investee companies
• Job creation – 290 jobs created as a direct result of the NPIF fund
• Cheshire and Warrington Region - £5.5m invested.

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INVESTMENT PROCESS

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• Maven has a track record with public sector funds of

taking SMEs from start up or first equity investment through to successful exits.

• Maven has the infrastructure in place to ensure

swift, effective decision making and to optimise the investment process for businesses and advisers.

• End-to-end process typically between 6 and 10

weeks from time of introduction to completion.

• Maven

will monitor the performance

• f

each investment through regular management information and face-to-face meetings with the senior management team, providing expertise and strategic guidance along the way.

Business plan Analysis & Initial investment committee Offer letter & due diligence Maven investment committee Legal process & completion Introduction to deal

Investment Criteria

• Management Team
• Product
• Addressable Market
• Commercial Traction
• Job Creation
• Clear exit strategy

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Business Plan Overview

• Company Overview
• Investment Proposal
• Market Overview
• Financials
• Management
• Exit Strategy

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THANK YOU

FOR PROFESSIONAL USE ONLY

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