Transcript Document

Tony Goulbourn
Chief Executive
Objectives
• Inform about SYIF
• Examine feedback from you
• How we shape the future
Key Messages
• 469 investments totalling £50 million
• Momentum of investment continuing
• Additional £4 million injected by
Yorkshire Forward
• £10 million to be invested up to end of
2008
• Contingency Fund from January 2009
Business Loans £15k - £150k
Andy Chaffer
SBF Business Director
Business Loans £15k - £150k
• Core market remains funding the gap in
projects for established businesses
• For early stage deals depends on
certainty of forecasted income
• Investment amount reflects risk and we
look to package deals with other
funders
Business Loans £15k - £150k
• Up to £1.3 million available to invest by
end of 2008 which provides headroom
• Additional money is available if needed
Investments by year
4
3.5
3
£M
2.5
2
1.5
1
0.5
0
2003
2004
2005
2006
Ye ar e nde d M arch
SBF
2007
2008
Business Loans Interest Rates
• Headline rate remains 12% but retained
rebate concept
• Rates are fixed for term of the loan
• Interest Rate Rebate available dependent
on risk subject to meeting on-going
conditions (Includes Management Accounts, QPR’s,
Dividend Covenants etc)
Business Loans Interest Rates
Business Stage
Rebate
Net Rate
Established &
Profitable
Established
4%
8%
2%
10%
Early Stage
No rebate
12%
Summary
• Ample money to lend to established and
early stage businesses
• If you have clients with funding gaps
please give me a call……………..
Equity Linked Packages
Mary Broadhead
Investment Director
Equity Linked Packages
• Equity linked packages from £100k to
£2.5 million
• All stages considered
• Returns linked to perceived risks
• Syndication with other investors possible
Equity Linked Packages
• Performance to date
• 82 investments in 44 companies
• £22.2 million invested to June 2008
• Some exits achieved already, more
in the pipeline
Equity Linked Packages
• Up to £4.7 million available to invest by
end of 2008
• Additional money is available if needed
Investments by year
7
6
5
£M
4
3
2
1
0
2003
2004
2005
2006
Year ended March
Cap/Dev
2007
2008
Types of investments
• Mezzanine loans for established, profitable
businesses (may include a small equity upside)
• Equity packages for earlier stage or riskier
proposals (minority stakes only)
• Terms of investment are structured to fit
each individual deal
Seedcorn Fund
Jonathan Dixon
Deputy Chief Executive
Key Goals of Seedcorn Fund
• To enhance the SYIF product range
• To increase the level of investment in
early stage knowledge based businesses
• To test the market, delivery mechanisms
and financial instruments
Seedcorn Fund
• Total investable value - £4.685m
• 2 portfolios:
 Proof of Concept
 Commercialisation
• Budgets for mentoring and management
support
Seedcorn Fund
• £2.5 million invested
• £2.1 million committed for investment by
the end of the year
• Additional investments of £1.2 million
anticipated before end of 2008 (funded
from interim fund)
Lessons Learnt
• Collaboration model can & does work
• Importance of milestone investments
• Importance of developing management
capability
• IP is mobile and therefore significant for
inward investment
Microloans
Fiona Greaves
Loans Manager
A Consortium Approach
• SYIF – lead. Managing agent for the
investor
• DonBAC: providing loan management for
non-social enterprise
• Key Fund: for social enterprise
Microloans
• Simple access & low bureaucracy for the
client
• Intensive support process for the client
• Cost effective delivery for the Investor
(BiG)
• Managed with a commercial focus
Amount of Loan
Details
Business Location
£15k - £50k
(exceptionally up to
£100k)
Sole traders, partnerships,
limited companies
Doncaster (immediate
travel to work area)
£1k - £15k
Unsecured. Loans in name
of owners of business
South Yorkshire
£500 - £15k
BiG Business Loans.
Unsecured. Loans in name
of owners of business
& social enterprises
Sheffield
Activity to date
• BiG - £96K in 22 businesses
• BiG – additional £31k approved
• Donbac - £23k in 3 businessses
Tony Goulbourn
• Conclusions
• Feedback
• Shaping the Future
Conclusions
• Proved the market
• Proved the business model
• The Fund will create a legacy fund of
circa £19 million for South Yorkshire
Feedback
• EKOS commissioned to undertake
survey – August 2008
• Objective: To seek intermediaries
views on SYIF's current operations
and the proposed Regional Successor
Fund.
Feedback - Satisfaction with SYIF
• High satisfaction levels – 82% satisfied
or very satisfied with overall performance
• Strong endorsement of services
(mentor/NED and pre-investment support)
Feedback - SYIF & the Finance Gap
• Finance gap greatest for new starts (89%) &
for early stage businesses (76%)
• Exists even for established small businesses
(62%) & for medium & larger businesses
(37%)
• SYIF helps meet the gap through its products
e.g 74% for small business fund
Feedback - The Successor Fund
• Awareness is high (76%)
• Value as a regional resource recognised
(96%)
• Should address areas of greatest market
failure (early stage, new starts and
technology based businesses)
• Two thirds say not sector prioritisation
Shaping the future
• The Contingency Fund
• The Successor Fund
www.syif.com
01709 386 377
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 Finance Ltd (company registration No. 01925556) and Key Fund
Yorkshire Ltd (Tel 0114 242 8900).