Whiterock launches NI’S biggest locally-managed equity fund

WHITEROCK has launched the biggest ever locally-managed equity investment fund for Northern Ireland companies with a pot of £75m.

It said the new Growth Capital Fund would address the need for growth funding here, making investments of between £1m and £5m for minority shareholdings in growth and scaling companies, with capacity for more funding as required.

Whiterock has been operating here for more than a decade, managing over £150m across four funds. It has lent over £120m to over 150 SMES, which has helped secure more than £100m of further funding from others.

Its first equity fund includes an investment of £45m from British Business Bank through its Enterprise Capital Funds programme, with the remaining £30m from private investors such as high net-worth individuals. Whiterock says it wants to invest in companies who can demonstrate clear sales growth and routes to market in areas like digital, ICT and creative, life and health sciences, agri-tech and advanced manufacturing.

Chief executive Paul Millar said: “While funding options have improved for companies, independent research has found there is still a clear equity gap in Northern Ireland when it comes to locally based private equity investors, particularly in the £1m-£5m investment range.

“The Growth Capital Fund is the largest ever locally managed equity fund for NI companies. It will invest in businesses with strong management teams and a demonstrated and proven business model, which have a high growth potential.

“We want to be a strategic partner that helps companies achieve their growth ambitions, while also generating attractive returns for our investors.”

It expects to invest in 15 to 20 companies over a five-year period.

Ken Cooper, managing director of Venture Solutions at British Business Bank, said: “The British Business Bank’s Enterprise Capital Funds programme is key in helping to develop and maintain effective venture capital provision in the UK, lowering the barriers to entry for emerging fund managers.

“The programme has backed 46 funds, representing more than £2bn of finance. Our commitment to Whiterock builds on that success and introduces a new funding option for scaling companies in Northern Ireland.”

Graham Ferguson, the former CFO of Newry-based technology company First Derivatives, will join Whiterock as investment director to work alongside David Mccurley and Paul Millar.

‘There is still a clear equity gap when it comes to local private equity investors’