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Finance Yorkshire Welcome www.finance-yorkshire.com
Finance Yorkshire James Newman - Chairman www.finance-yorkshire.com
Finance Yorkshire Agenda www.finance-yorkshire.com <ul><li>Alex McWhirter  –  Assistant Director for Business, Yorkshire F...
www.finance-yorkshire.com Yorkshire Forward Alex McWhirter -  Assistant Director  for Business
Finance Yorkshire James Newman - Chairman www.finance-yorkshire.com
<ul><li>Mission </li></ul><ul><li>To build a permanent regional fund by contributing to the  success of SME’s constrained ...
Finance Yorkshire The evidence   <ul><li>The experience and evaluation of previous investment funds </li></ul><ul><li>The ...
Finance Yorkshire The approach <ul><li>Working alongside the commercial market ; </li></ul><ul><li>Maintaining and develop...
Finance Yorkshire   The approach <ul><li>Working in partnership with; </li></ul><ul><li>Business Link Yorkshire </li></ul>...
Finance Yorkshire Board <ul><li>James Newman </li></ul><ul><li>Alex McWhirter </li></ul><ul><li>David Bagley </li></ul><ul...
Finance Yorkshire Jonathan Dixon -  Acting CEO www.finance-yorkshire.com
Finance Yorkshire PIF & SYIF   <ul><li>Finance Yorkshire will build on the success of PIF and SYIF </li></ul><ul><li>PIF a...
Finance Yorkshire Fund breakdown £90m Investment Capital £30m European Regional Development Fund  £15m Yorkshire Forward –...
Finance Yorkshire Sustainability and legacy   www.finance-yorkshire.com <ul><li>Legacy fund to be invested in region ’ s b...
Finance Yorkshire   C ustomers <ul><li>SME’s paying business rates in Yorkshire and the Humber  or relocating to the regio...
Finance Yorkshire  Three portfolios <ul><li>Seedcorn Finance (up to £780k) £15m </li></ul><ul><li>Business Loans (£15k – 1...
Seedcorn Finance   Ed French www.finance-yorkshire.com
Seedcorn Finance   Team www.finance-yorkshire.com www.finance-yorkshire.com <ul><li>Ed French – Fund Manager </li></ul><ul...
Seedcorn Finance   Objectives www.finance-yorkshire.com <ul><li>Yorkshire potential </li></ul><ul><li>Impact of “Beacon Co...
Seedcorn Finance   Investment type www.finance-yorkshire.com <ul><li>Starting low £15-£100k sometimes </li></ul><ul><li>In...
Seedcorn Finance   Target investments www.finance-yorkshire.com <ul><li>Pre-revenue or early-revenue </li></ul><ul><li>“ H...
Seedcorn Finance   Process www.finance-yorkshire.com <ul><li>Lightweight - enquiries via website  www.finance-yorkshire.co...
Seedcorn Finance   Case study 1 - Iceotope www.finance-yorkshire.com <ul><li>How it started </li></ul><ul><li>What has hap...
Seedcorn Finance   Case study 2 - Tangentix www.finance-yorkshire.com <ul><li>How it started </li></ul><ul><li>What has ha...
Seedcorn Finance   Summary www.finance-yorkshire.com <ul><li>Great potential in Yorkshire </li></ul><ul><li>Creating techn...
Business Loans   Tony Goulbourn www.finance-yorkshire.com
Business Loans   Objectives www.finance-yorkshire.com <ul><li>Objective – to provide gap funding </li></ul><ul><li>To work...
Business Loans   Products www.finance-yorkshire.com <ul><li>Fixed rate loans between £15,000 - £150,000 </li></ul><ul><li>...
Business Loans   Types of deals www.finance-yorkshire.com <ul><li>Financial Gaps   </li></ul><ul><li>Working Capital </li>...
Business Loans   Our approach www.finance-yorkshire.com <ul><li>Two Teams: North & South covering the whole region </li></...
Business Loans   Case Study 1 – A manufacturer of heavy plant www.finance-yorkshire.com <ul><li>This company won a £1m con...
Business Loans   Case study 1 – A manufacturer of heavy plant www.finance-yorkshire.com <ul><li>Discounting facilities but...
Business Loans   Case study 2 – A brewery www.finance-yorkshire.com <ul><li>This profitable company wished to double its b...
Business Loans   Case study 2 – A brewery www.finance-yorkshire.com <ul><li>The alterations were being made to a leased pr...
Equity Linked Finance   Marion Bernard www.finance-yorkshire.com
Equity Linked Finance   Objectives www.finance-yorkshire.com <ul><li>£48m to be invested by 31 Dec 2013 </li></ul><ul><li>...
Equity Linked Finance   Objectives www.finance-yorkshire.com <ul><li>Detailed commercial assessment of opportunity </li></...
Equity Linked Finance   Our approach www.finance-yorkshire.com <ul><li>Enquiries via website  www.finance-yorkshire.com   ...
Equity Linked Finance   Case study 1 - Excelsyn www.finance-yorkshire.com <ul><li>Combined equity and mezzanine financing ...
Equity Linked Finance   Case study 2 - Tanfield www.finance-yorkshire.com <ul><li>Combined equity and mezzanine financing ...
Equity Linked Finance   Working together www.finance-yorkshire.com <ul><li>Seeking out all viable opportunities </li></ul>...
Finance Yorkshire Jonathan Dixon -  Acting CEO www.finance-yorkshire.com
Finance Yorkshire Location 1 Capitol Court Capitol Business Park Dodworth Barnsley S75 3TZ www.finance-yorkshire.com
Finance Yorkshire    Timetable www.finance-yorkshire.com <ul><li>Funds complete at end of March 2010 </li></ul><ul><li>Ope...
Finance Yorkshire    A pplication process www.finance-yorkshire.com <ul><li>Call us to make sure it’s eligible 0845 649 00...
Finance Yorkshire Q & A www.finance-yorkshire.com
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Fy Launch Sheffield Slides

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  1. 1. Finance Yorkshire Welcome www.finance-yorkshire.com
  2. 2. Finance Yorkshire James Newman - Chairman www.finance-yorkshire.com
  3. 3. Finance Yorkshire Agenda www.finance-yorkshire.com <ul><li>Alex McWhirter – Assistant Director for Business, Yorkshire Forward </li></ul><ul><li>James Newman – Chairman, Finance Yorkshire </li></ul><ul><li>Jonathan Dixon - Acting Chief Executive, Finance Yorkshire </li></ul><ul><li>Ed French - Seedcorn Finance </li></ul><ul><li>Tony Goulbourn - Business Loans </li></ul><ul><li>Marion Bernard - Equity Linked Finance </li></ul><ul><li>Questions & Answers </li></ul>
  4. 4. www.finance-yorkshire.com Yorkshire Forward Alex McWhirter - Assistant Director for Business
  5. 5. Finance Yorkshire James Newman - Chairman www.finance-yorkshire.com
  6. 6. <ul><li>Mission </li></ul><ul><li>To build a permanent regional fund by contributing to the success of SME’s constrained by finance </li></ul><ul><li>Vision </li></ul><ul><li>Successful and growing financial investment institution </li></ul><ul><li>Recognised and respected as a key participant in the SME business and professional sectors </li></ul><ul><li>Stimulating demand for finance in our key market segments </li></ul><ul><li>Realising good returns for investors and value for money for sponsors, Government and Yorkshire Forward </li></ul>www.finance-yorkshire.com Finance Yorkshire Our Mission and Vision
  7. 7. Finance Yorkshire The evidence <ul><li>The experience and evaluation of previous investment funds </li></ul><ul><li>The track record of PIF and SYIF </li></ul><ul><li>Yorkshire Forward ’ s development agenda </li></ul><ul><li>The effect of reduced availability of finance from commercial lenders </li></ul><ul><li>Recent recession </li></ul>www.finance-yorkshire.com
  8. 8. Finance Yorkshire The approach <ul><li>Working alongside the commercial market ; </li></ul><ul><li>Maintaining and developing relationships with financial intermediaries to promote awareness and dealflow </li></ul><ul><li>Market making effect, making deals happen by spreading the risk with other investors and lenders </li></ul><ul><li>Co-investing with other funds </li></ul>www.finance-yorkshire.com
  9. 9. Finance Yorkshire The approach <ul><li>Working in partnership with; </li></ul><ul><li>Business Link Yorkshire </li></ul><ul><li>Connect Yorkshire </li></ul><ul><li>Yorkshire Forward – sector teams and innovation </li></ul><ul><li>Enterprise Agencies </li></ul><ul><li>Chambers of Commerce </li></ul><ul><li>Local Authority initiatives </li></ul>www.finance-yorkshire.com
  10. 10. Finance Yorkshire Board <ul><li>James Newman </li></ul><ul><li>Alex McWhirter </li></ul><ul><li>David Bagley </li></ul><ul><li>Ian Kelly </li></ul>www.finance-yorkshire.com <ul><li>Jennie Adams </li></ul><ul><li>John Watson </li></ul><ul><li>Peter Myers </li></ul><ul><li>Tony Parsons </li></ul>
  11. 11. Finance Yorkshire Jonathan Dixon - Acting CEO www.finance-yorkshire.com
  12. 12. Finance Yorkshire PIF & SYIF <ul><li>Finance Yorkshire will build on the success of PIF and SYIF </li></ul><ul><li>PIF and SYIF in portfolio phase </li></ul><ul><li>PIF and SYIF will become subsidiaries of Finance Yorkshire </li></ul><ul><li> - separate fund managers </li></ul><ul><li> - administered as separate companies </li></ul><ul><li> - separate legacy funds </li></ul>www.finance-yorkshire.com
  13. 13. Finance Yorkshire Fund breakdown £90m Investment Capital £30m European Regional Development Fund £15m Yorkshire Forward – Capital £45m European Investment Bank (JEREMIE) £10m Yorkshire Forward – Revenue www.finance-yorkshire.com
  14. 14. Finance Yorkshire Sustainability and legacy www.finance-yorkshire.com <ul><li>Legacy fund to be invested in region ’ s businesses in line with original objectives </li></ul><ul><li>To be utilised after 2019 </li></ul><ul><li>Eventually aggregated with PIF and SYIF legacies </li></ul>
  15. 15. Finance Yorkshire C ustomers <ul><li>SME’s paying business rates in Yorkshire and the Humber or relocating to the region </li></ul><ul><li>A new start or growing business </li></ul><ul><li>A business with growth potential </li></ul><ul><li>A business unable to source its full funding requirement from the commercial market </li></ul>www.finance-yorkshire.com
  16. 16. Finance Yorkshire Three portfolios <ul><li>Seedcorn Finance (up to £780k) £15m </li></ul><ul><li>Business Loans (£15k – 150k) £27m </li></ul><ul><li>Equity Linked Finance (£100k - £2m) £48m </li></ul>www.finance-yorkshire.com
  17. 17. Seedcorn Finance Ed French www.finance-yorkshire.com
  18. 18. Seedcorn Finance Team www.finance-yorkshire.com www.finance-yorkshire.com <ul><li>Ed French – Fund Manager </li></ul><ul><li>Michael Bakewell - Regional Director </li></ul><ul><li>Ashwin Kumaraswamy – Investment Manager </li></ul><ul><li>AN Other - TBA shortly </li></ul>
  19. 19. Seedcorn Finance Objectives www.finance-yorkshire.com <ul><li>Yorkshire potential </li></ul><ul><li>Impact of “Beacon Companies” </li></ul><ul><li>Challenge- 10-15 Beacon Companies </li></ul><ul><li>Importance of Legacy </li></ul><ul><li>What it isn’t..! </li></ul>
  20. 20. Seedcorn Finance Investment type www.finance-yorkshire.com <ul><li>Starting low £15-£100k sometimes </li></ul><ul><li>Investments up to £780k </li></ul><ul><li>Investments of £2m+ when syndicating with other funds </li></ul><ul><li>Fast (4 yr fund) </li></ul><ul><ul><li>Self sustainable companies in 2-3 yrs </li></ul></ul><ul><ul><li>Exit in 3-5 yrs </li></ul></ul>
  21. 21. Seedcorn Finance Target investments www.finance-yorkshire.com <ul><li>Pre-revenue or early-revenue </li></ul><ul><li>“ Huge” market opportunity </li></ul><ul><li>Competitor barriers at exit </li></ul><ul><ul><li>Patents, Data lock-in, Approvals etc. </li></ul></ul><ul><li>Management open to “change and growth” </li></ul>
  22. 22. Seedcorn Finance Process www.finance-yorkshire.com <ul><li>Lightweight - enquiries via website www.finance-yorkshire.com </li></ul><ul><li>Very simple application form, then conversation </li></ul><ul><li>Variable timing (1-12 months) </li></ul><ul><li>Technology Entrepreneur Loans </li></ul><ul><ul><li>Fast, ~£80k, simple legals, 6-12 month phase, low dilution </li></ul></ul>
  23. 23. Seedcorn Finance Case study 1 - Iceotope www.finance-yorkshire.com <ul><li>How it started </li></ul><ul><li>What has happened </li></ul><ul><li>Where we hope it will go </li></ul>
  24. 24. Seedcorn Finance Case study 2 - Tangentix www.finance-yorkshire.com <ul><li>How it started </li></ul><ul><li>What has happened </li></ul><ul><li>Where we hope it will go </li></ul>
  25. 25. Seedcorn Finance Summary www.finance-yorkshire.com <ul><li>Great potential in Yorkshire </li></ul><ul><li>Creating technology beacon companies </li></ul><ul><li>Focus on highest growth opportunities </li></ul>
  26. 26. Business Loans Tony Goulbourn www.finance-yorkshire.com
  27. 27. Business Loans Objectives www.finance-yorkshire.com <ul><li>Objective – to provide gap funding </li></ul><ul><li>To work collaboratively with intermediaries: public and private </li></ul><ul><li>Commercial lending designed to achieve growth and economic impact </li></ul>
  28. 28. Business Loans Products www.finance-yorkshire.com <ul><li>Fixed rate loans between £15,000 - £150,000 </li></ul><ul><li>Terms up to 5 years </li></ul><ul><li>Interest rate rebates available </li></ul><ul><li>Financial packaging with other forms of debt finance including the Enterprise Finance Guarantee </li></ul>
  29. 29. Business Loans Types of deals www.finance-yorkshire.com <ul><li>Financial Gaps </li></ul><ul><li>Working Capital </li></ul><ul><li>Innovation Project with rapid growth </li></ul><ul><li>Asset Based Lending (property and fixed assets) </li></ul><ul><li>Import and Export </li></ul>
  30. 30. Business Loans Our approach www.finance-yorkshire.com <ul><li>Two Teams: North & South covering the whole region </li></ul><ul><li>Experienced Investment Managers in the team </li></ul><ul><li>If you have client seeking finance and there is a gap – pick up the phone or email </li></ul><ul><li>Look at the website – www.finance-yorkshire.com </li></ul>
  31. 31. Business Loans Case Study 1 – A manufacturer of heavy plant www.finance-yorkshire.com <ul><li>This company won a £1m contract to design, build & export a piece of plant </li></ul><ul><li>The buyer paid £350k with the order – but in return the company had to provide a bank guarantee to cover this advance payment </li></ul><ul><li>Without this guarantee the UK bank could not release the £350k </li></ul><ul><li>They had existing overdraft facilities & could secure invoice discounting facilities but they had a security gap of £100k to cover the APG </li></ul>
  32. 32. Business Loans Case study 1 – A manufacturer of heavy plant www.finance-yorkshire.com <ul><li>Discounting facilities but they had a security gap of £100k to cover the APG </li></ul><ul><li>We agreed a £100k advance to be deposited with the bank to act as part collateral to secure the advance payment guarantee </li></ul><ul><li>We agreed full repayment from the second payment from the buyer – which occurred once the plant was operating on site abroad – which took 3 months </li></ul>
  33. 33. Business Loans Case study 2 – A brewery www.finance-yorkshire.com <ul><li>This profitable company wished to double its brewing capacity </li></ul><ul><li>That meant an extension to the factory – and disruption and cashflow issues whilst the new brewplant was imported, commissioned & trialled (for taste) </li></ul><ul><li>They had modest banking facilities, but the new brewplant was difficult to fund as it had little residual value, and was coming in from another country </li></ul>
  34. 34. Business Loans Case study 2 – A brewery www.finance-yorkshire.com <ul><li>The alterations were being made to a leased premises – so little value to any lender </li></ul><ul><li>We helped the brewer to specialist advice – which led to the business receiving grant assistance from Yorkshire Forward. We then agreed to lend the remaining gap so the plant could be purchased & commissioned </li></ul><ul><li>In time the new plant was commissioned & began to produce beer of an identical taste – and the brewery were then able to deliver significant turnover growth leading to new jobs </li></ul>
  35. 35. Equity Linked Finance Marion Bernard www.finance-yorkshire.com
  36. 36. Equity Linked Finance Objectives www.finance-yorkshire.com <ul><li>£48m to be invested by 31 Dec 2013 </li></ul><ul><li>Start ups, growth, development capital or expansion </li></ul><ul><li>£100k - £1m in equity and mezzanine instruments </li></ul><ul><li>Joint equity linked packages up to £2m </li></ul><ul><li>In all eligible sectors </li></ul><ul><li>Across the Yorkshire and Humber region </li></ul>
  37. 37. Equity Linked Finance Objectives www.finance-yorkshire.com <ul><li>Detailed commercial assessment of opportunity </li></ul><ul><li>Management, management, management </li></ul><ul><li>Products, market, financials (P & L, B/S, cash) </li></ul><ul><li>Source and use of funds </li></ul><ul><li>Value growth and exit planning (within 5 years) </li></ul>
  38. 38. Equity Linked Finance Our approach www.finance-yorkshire.com <ul><li>Enquiries via website www.finance-yorkshire.com </li></ul><ul><li>Business plan – full commercial assessment </li></ul><ul><li>Investment team – to be announced shortly </li></ul><ul><li>Approach – supportive, professional, focused </li></ul><ul><li>Objectives – quality deals, generating legacy returns </li></ul>
  39. 39. Equity Linked Finance Case study 1 - Excelsyn www.finance-yorkshire.com <ul><li>Combined equity and mezzanine financing package </li></ul><ul><li>Alongside bank finance and Endless LLP </li></ul><ul><li>Invested 2007 raising £2m in equity finance </li></ul><ul><li>NXD position, strategic and operational involvement </li></ul><ul><li>Trade sale to Albany Molecular Inc in 2010 </li></ul><ul><li>31% IRR achieved for Legacy Funds </li></ul>
  40. 40. Equity Linked Finance Case study 2 - Tanfield www.finance-yorkshire.com <ul><li>Combined equity and mezzanine financing package </li></ul><ul><li>Alongside bank finance, Hotbed and angel investors </li></ul><ul><li>Invested 2006 raising £2.3m equity finance </li></ul><ul><li>Recruited new NXD, close involvement in business </li></ul><ul><li>Raised further €4.3m from Inventages in 2010 </li></ul><ul><li>Retain Observer rights to Board, assisting growth </li></ul>
  41. 41. Equity Linked Finance Working together www.finance-yorkshire.com <ul><li>Seeking out all viable opportunities </li></ul><ul><li>Working in partnership with all regional players </li></ul><ul><li>£48m funding for SMEs </li></ul><ul><li>Only for Yorkshire and Humber, and new to region </li></ul><ul><li>Make the most of it! </li></ul>
  42. 42. Finance Yorkshire Jonathan Dixon - Acting CEO www.finance-yorkshire.com
  43. 43. Finance Yorkshire Location 1 Capitol Court Capitol Business Park Dodworth Barnsley S75 3TZ www.finance-yorkshire.com
  44. 44. Finance Yorkshire Timetable www.finance-yorkshire.com <ul><li>Funds complete at end of March 2010 </li></ul><ul><li>Open offices at Capitol Court 5 th April 2010 </li></ul><ul><li>First investment April 2010 </li></ul><ul><li>Open for enquiries now……… </li></ul>
  45. 45. Finance Yorkshire A pplication process www.finance-yorkshire.com <ul><li>Call us to make sure it’s eligible 0845 649 0000 </li></ul><ul><li>Get the applicant to complete the Application Form (download from www.finance-yorkshire.com ) </li></ul><ul><li>Send the completed Application Form & the supporting information to Finance Yorkshire </li></ul>
  46. 46. Finance Yorkshire Q & A www.finance-yorkshire.com

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