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Invest Northern Ireland fund to invest £50m in SMEs
Invest Northern Ireland has announced the appointment of managers for a new £50million fund which will generate investment into high potential Northern Ireland companies.
Clarendon Fund Managers has been appointed to manage the Co-Fund NI II which aims to stimulate more private investment in NI companies that demonstrate high growth potential and have innovative and export focused products, including those in the manufacturing & engineering sector.
William McCulla, Invest Northern Ireland’s Director of Corporate Finance said: “Co-Fund NI builds on the success of its predecessor, which invested over £12 million in 37 high growth Northern Ireland companies, alongside £20 million from private investors.
“Co-Fund NI remains a key component of our wider Access to Finance strategy, with the objective of stimulating investment activity in SMEs across Northern Ireland.
“Several Co-Fund NI companies have achieved significant ‘scale-up’ investment. These include Cirdan Imaging, MyCarNeedsA.com and most recently Sisaf, which is located in the Northern Ireland Science Park. Sisaf has developed a patented drug delivery platform and following funding from Co-Fund NI has now raised over $5.0m from US and Singapore based investors.”
Co-Fund NI invests with private investors such as business angels or their syndicates into eligible SMEs based in Northern Ireland, and provides up to 50 per cent of equity investment alongside 50 per cent from private investors on a deal-by-deal basis.
Neil Simms at CFM added: “We are delighted to have been appointed to manage the new £50m Co-Fund. Our experience of managing its predecessor showed us that business angels, and indeed other sources of private investment, are playing an increasingly important role in the development of young high potential companies that are seeking equity finance to pursue growth in export markets.
“The first Co-Fund invested over £12million, proving it to be one of the most active sources of venture capital in Northern Ireland.
“In addition, two companies have gone on to be successfully sold, generating a return of three times our initial investment. PathXL, a digital pathology technology company, was sold to the global Dutch head-quartered company Philips and Ingresso, a ticketing technology business, was sold to Berkshire-based Accesso.”
The fund is supported by the European Regional Development Fund under the Investment for Growth & Jobs Northern Ireland Programme (2014-2020).