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A new chapter for the founders of Genesis

Published: 27th January 2004

Genesis (Sheffield Ltd) formed with help of the fund

A successful management buyout has taken place, and six jobs created, with the help of a £50,000 unsecured loan from South Yorkshire Investment Fund.

Genesis (Sheffield) Ltd was formed by Mark Blakemore and Keith Boldock when they were made redundant by their employer.

With active support and encouragement from their former employers Mark and Keith saw the potential for them to buy out the rights to produce and supply a quality British manufactured pipe tool product range. Genesis Sheffield also plan to offer other engineering services such as Fabrication, C.N.C Batch turning, C.N.C Batch milling, and with the help of the Fund managed to get their business plan off the ground and begin operating.

Mark and Keith invested their redundancy payout and took an overdraft with HSBC to combine with the unsecured £50,000 loan from South Yorkshire Investment Fund

Mark Blakemore, co-founder of Genesis, said: "The money from South Yorkshire Investment Fund was fundamental in getting the business moving forward. Without their help we would not be in the position we are now. We were introduced to the Fund by our accountant James Hall from Hawsons who put us in touch with Investment Manager Allan Wood. "

Tony Goulbourn, Chief Executive of South Yorkshire Investment Fund Ltd, said: "We are delighted to be able to support new businesses such as Genesis Sheffield Ltd. They are offering a British-built, quality
product and are a good example of the businesses we are seeking to support."

The Fund can provide loans and equity investments ranging from £15k to £ 2.5m to businesses in, or prepared to relocate to, South Yorkshire. The Fund has already invested over £4.9 million in over 77 businesses.It offers two key products, one of which is loans ranging from £15k to£ 150k with effective annual interest rates from as little as 2.4% per annum. Loans are unsecured for the majority of established profitable businesses with unsecured loans of up to £50k available for start-ups or
early stage.

The second product is an equity-linked package of a loan with equity options or a equity investment, ranging from £50k to £2.5m where the Fund may take a minority shareholding in the business.

A unique feature of the way the Fund can help businesses is the Mentorbank project, which provides subsidised mentoring support to help management teams grow their business more profitably. South Yorkshire Investment Fund also run Capital Network a Business Angels introductory service for early stage businesses in South Yorkshire. Where appropriate Business Angel finance can also complement South Yorkshire Investment fund packages.

Editor's Notes

About South Yorkshire Investment Fund

South Yorkshire Investment Fund  provided seedcorn, loan and equity linked investments, ranging from £15k to £2.5m, specifically to help small and medium businesses meet the gaps in funding they need for growth and development.

Created as part of the Objective 1 programme, the Fund is a private and public sector business finance provider. The European Regional Development Fund and Yorkshire Forward are investors in the Fund.

South Yorkshire Investment Fund also provided access to Business Angel investments from the Yorkshire Association of Business Angels and Microloans through BiG Business Loan Fund and Donbac Microloan Fund.

Finance Yorkshire has now taken on responsibility for providing gap finance in Yorkshire and the Humber.

For further details please contact Suzanne Tinkler,  on 0845 649 0000.

South Yorkshire Investment Fund Ltd is a company limited by guarantee (Registered No 3936065). South Yorkshire Investment Fund comprises three sub funds, the South Yorkshire Investment Capital Fund, the South Yorkshire Investment Development Fund, which are each managed by YFM Venture Finance Limited, and the South Yorkshire Investment Small Business Fund, which is managed by Finance South Yorkshire Ltd. YFM Venture Finance Limited (Tel 0113 294 5000) and Finance South Yorkshire Ltd (Tel 01709 386 377) are each authorised and regulated by the Financial Services Authority. South Yorkshire Investment Fund also provides a number of services, which are not regulated by The Financial Services Authority. These include the pilot Seedcorn Fund, BiG Business Loan Fund, Mentorbank and access to the Donbac Microloan Fund. BiG Business Loan Fund is managed by Donbac Ltd (company registration No. 01925556) and Key Fund Yorkshire Ltd (Tel 0114 242 8900).