NEL Fund Managers from the Finance for Business North East Growth Fund report that the group has made over £25 million in investments to regional businesses over the past year in the U.K. In the prior year, the fund had only provided around £5 million for expansion and growth capital to developing, regional businesses. The mission of the fund is to create 1,500 new regional jobs, while helping to sustain another 1,300. The company has more than quintupled that in a year. The fund launched in early 2010. It has made 125 investments averaging around £204,000 each.

In the acquisition financing arena, capital availability is destiny as companies require reliable access to capital to grow over the long term. Unforeseen capital needs usually arise when acquirers least expect it. This can cause some concern for the acquisition financing provider, especially when covenants tighten up and that working capital availability is utilized faster than expected.

Mezzanine debt borrowing is usually a straightforward activity that many companies use for funding of transitional growth. Mezzanine debt lenders are highly transparent about their due diligence approach and their post-closing loan management making it easy for companies to engage with.

Elections have consequences and positive ones at that for the acquisition financing middle market. While much media attention is paid to the direction of the yield curve and the Fed’s likely rate cuts, scant attention is paid to the more important drivers of the acquisition financing market – business psychology and regulatory climate.

FFBNE Growth Fund Reaches £25 Million in Investments

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