Fund-raising success boosts NVM’s investment war chest to £100m .
24 September 2013
Fund-raising success boosts NVM Private Equity's investment war chest to £100 million
Independently owned investment firm, NVM Private Equity (NVM), has a growing pool of funds to invest in established profitable businesses across the North East and Yorkshire.
In the coming year, NVM anticipates having £100 million available to invest in growing small-to-medium sized enterprises following the recent launch of a £50 million joint share offer by NVM’s three Venture Capital Trusts (VCTs).
NVM invests between £2 million and £10 million in companies looking to grow organically, acquire another business or finance a change of ownership through a management buy-out. So far this year, NVM’s Northern investment team, comprising Mauro Biagioni and Andy Leach, has invested £10 million in two exciting businesses. Both companies were looking to fund management buy-outs which would give them the freedom to develop and grow. Stockton-on-Tees based Cleveland Biotech will take advantage of the significant growth potential in environmentally friendly biological waste management products, and Nelson based Buoyant Upholstery will use its investment to supply innovative new upholstered furniture products and build on the success of its growing customer base.
Mauro Biagioni, NVM Investment Director for the North East and Yorkshire, comments:
“We typically take a place on the board of the businesses we invest in, so the initial deal is often just the start. Our aim is to offer advice and, if necessary, incremental funding to bring the company’s growth strategy to fruition. We are in it for the long-term, so our relationship with a management team and our understanding of their business is crucial to a successful partnership. With our interests aligned with those of management, we will both work to maximise the potential of the business and see it grow. Successful investment in SMEs will only be achieved by backing businesses with the potential to deliver tangible growth.”
In the past two years, NVM has helped existing Northern portfolio companies Wear Inns and Kitwave to make strategic acquisitions to further boost market presence. Wear Inns successfully acquired a further 11 managed pubs across the North bringing the total estate to 26 pubs, with this year’s turnover just under £12 million. Kitwave – a wholesaler of confectionery, soft drinks, alcohol and tobacco – acquired two complementary businesses resulting in a significant increase in turnover to £193 million. Both businesses have substantially increased profitability since NVM’s first investment.
NVM has firm roots in the North since it was first launched in Newcastle in 1984. Both Mauro and Andy live and work in the North of England, so are ingrained in their regions. Andy was recruited at the beginning of 2013 and is well-known in the North West, having spent the last 20 years working in the region. There are plans to strengthen the Northern team further with another appointment in the North West.
Mauro Biagioni comments:
“It is vital to be on the ground in the North East and Yorkshire business community. If you are based outside the region it is hard to maintain regular face-to-face contact with your investee companies and key advisor contacts. The North East and Yorkshire are exciting regions to invest in, and NVM is keen to use its newly raised funds to support management teams looking to take the next important step forward for their businesses.”
NVM Private Equity Limited (NVM)
is independently owned with over 28 years’ experience of investing in unquoted UK businesses. NVM is a generalist investor, managing £240m of funds, and is differentiated by having executives living and working in regional business communities throughout the UK. NVM seeks investment opportunities in UK businesses which have the right mix of growth potential and market vision. They may be looking to grow organically, acquire another business or secure a management buy-out. Typically, NVM looks to invest between £2m and £10m in each transaction. www.nvm.co.uk
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