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Equity Linked Investments

Finance Yorkshire is not accepting new applications for investment at this time.

At the start of 2017, Finance Yorkshire received funds from the Sheffield and Leeds City Regions to invest until the Northern Powerhouse Investment Fund (NPIF) was operational. NPIF was launched in February 2017. Please click here for details

Finance Yorkshire provides investment to selected businesses, management teams and entrepreneurs. We can tailor financial packages to suit individual needs. Below are three examples of investment packages.

1.  For profitable companies with an established track record and generating turnover of £5m or more, we can offer Loans with Profit Participation, for example:

  • Range typically from £400k to £1m
  • 10% pa fixed interest rate or 10% of net profit (whichever is higher)
  • Up to 6 months capital holiday
  • Single, profit-related payment at redemption
  • No personal guarantees
  • Typically unsecured

They benefit companies and owners in a number of ways including linking repayment terms to the financial success of the business, without any dilution of equity.

2.  For businesses generating a turnover of less than £5m with a shorter track record, we can offer a mix of Loan and Equity investment.  We structure our investment to suit the company’s requirements, for example:

  • Range typically from £250k to £750k
  • Minority equity stake
  • Loan capital with terms from 3 to 5 years
  • No personal guarantees
  • Typically unsecured
  • A mix of cash pay interest and rolled up interest on the loan element
  • Loan repayment holidays and tiered repayments to suit cash flow

3.  For businesses at an earlier stage in their life cycle, with plans for rapid growth but with a small capital base, we typically invest in Equity only:

  • Range typically £100k to £500k
  • Minority equity stake

We can invest in much larger transactions alongside other finance providers, where eligible. For any Equity investment, the size of the equity stake will depend on a number of factors including the size of the investment, the perceived level of risk and the valuation of the company.

As shareholders, we have a vested interest in ensuring that the company succeeds, as we share in the company's success.  Our aim is to achieve a suitable mixed return from loan income (i.e. interest, etc.) and from any capital gain on equity at exit. As part of an equity-linked investment, we may appoint a non-executive director to work with the company.

See also our frequently asked questions

We can help your business if you are:

  • An SME* paying business rates in the Yorkshire and Humber region or those wishing to re-locate.
  • Growth businesses which are profitable or approaching profitability
  • And you have a gap in funding where conventional sources of finance are insufficient or unavailable.

Example equity linked investment deals:

  • Growth capital - eg; expansion of capacity, supporting new products or markets
  • Working capital - eg; investment in stock, work in progress or new customers
  • Capital expenditure - eg; investment in new machinery or equipment
  • Relocation - eg; for businesses wishing to move into the region

Equity linked investment details:

Loans:

£100k to £1m

Equity investment:

£100k to £2m

Loans with Profit Participation:

£400k to £1m, 10% fixed interest or 10% of net profit (whichever is higher)

Mixed package:

£100k to £2m

Effective fixed annual interest rates:

Each investment is dealt with on a bespoke basis

Exit:

Exit targeted within 5 years

How to apply

Finance Yorkshire is not accepting new applications for investment at this time.

1. Check your eligibility and send an enquiry

  • Use our online enquiry form to check your eligibility and send a summary of your business and your funding requirements to Finance Yorkshire.

2. Finance Yorkshire will contact you

  • A Finance Yorkshire investment manager will contact you to discuss your application, and provide any guidance you need to fill out the application form.

3. Submit an application form

  • When asked by the investment manager, you will need to submit an application form. Guidelines on the application process can be downloaded Enquiry/Application Guidelines. Complete all required information and send it by post to Finance Yorkshire at the address on the form.

4.  Finance Yorkshire - Customer Charter

  • We will respond to any enquiry within 5 working days. 
  • We will contact clients within 5 working day of receiving an application to request further information, arrange a mutually convenient appointment or decline the application. 
  • For Equity Linked Finance, we will normally give a formal decision within 21 working days from the resolution of the key issues.  Typically these key issues are related to legal, due diligence, syndication, contractual and outstanding third-party checks and sign-off.

If you have any questions about making an application phone us on 0300 030 6060 or email info@finance-yorkshire.com

*A Small or Medium-sized Enterprise (SME) is a business employing fewer than 250 employees, with an annual turnover of less than 50m Euros or balance sheet net assets of less than 43m Euros. The business cannot be part of a larger group employing more than 249 employees and where the group owns at least a 25% share of the business.

**Exceptions - Finance Yorkshire cannot invest in the following: re-financing existing commercial borrowings, failing businesses, expansion finance in medium sized businesses (50 250 employees) in non assisted areas (We are working to reverse this last exclusion but this may take up to six months. If this exclusion is likely to affect you, please talk to us).