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Profile Spring 2008 Newsletter

£150m Successor Fund to continue business investment

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Tony Goulbourn, Chief Executive of SYIF with Julie Readman, SYIF Director.

South Yorkshire will benefit from a new Yorkshire-wide £150 million Fund being raised for 2009 designed to support growing businesses.

South Yorkshire Investment Fund (SYIF), which provides investments to help small and medium sized businesses meet the gaps in funding for growth and development, is currently working closely with Yorkshire Forward and Partnership Investment Finance to help establish a Yorkshire-wide Successor Fund.

SYIF believe the new organisation, planned to start in 2009, will continue the success it has achieved with its current fund SYIF1, which is set to come to an end later this year.

Tony Goulbourn, Chief Executive of SYIF, made the announcement at their annual Roadshows, hosted across South Yorkshire.

Tony said: "We are talking to the Regional Development Agency, Yorkshire Forward, the European Commission and the Government about having a new fund. They have been very positive and do not want to lose the momentum gained by the existing investment teams.

"Yorkshire Forward have conditionally committed £60 million of money and we are also talking to the European Investment Bank about the possibility of matching that to create a core fund of £120 million.

"On top of which we can then attract private sector finance to provide a fund that will, going forward for the whole region, continue the good work we have started in South Yorkshire and drive the momentum forward for businesses.

"The monies that will be allocated to this new Regional fund will be distributed between South Yorkshire and the rest of Yorkshire. Tony stressed that there will be a dedicated allocation of money for South Yorkshire which will mean the work started here will continue.

"The ideal is that we have this in place by 1 January 2009, that's a tough ask at the moment. We are talking to Yorkshire Forward about an interim fund to cover any gap, because the worst thing that could happen is that we lose momentum which takes twice as long to restore in the market."

SYIF insist that while they expect to fully invest by the end of 2008 - it is important for businesses and intermediaries to continue to bring deals to the fund, and are encouraged to make contact with them to discuss new deals.

The Roadshows, staged in Barnsley, Sheffield, Doncaster and Rotherham, attended by over 500 businesses and intermediaries, also highlighted the success of investment in businesses, the impact SYIF's investments have made, including testimonials from clients and a question and answer session.

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).