Northern Venture Managers (NVM) is increasing its activity in the £10 million MBO market. The change of focus reflects the growing capacity of the NVM team, which has been actively recruiting over the past year.
Investment director Tim Levett said: “NVM is now in a position to be able to underwrite deals of this size. It has access to a large pool of investment funds from its three successful VCT funds and Northern Investors Company, which has consistently been a top performer in the whole investment trust market.”NVM currently has assets of over £140 million and will be actively seeking to do more deals in the £5 million to £15 million range. Recent deals in this bracket include the £10 million IBO of Stainton Metal Company, the £11.4 million MBO of DMN Installations, where NVM was the sole institutional investor and the MBI of John Fredericks Plastics Limited, where NVM provided the lead funding in a £12 million package including working capital and funds for organic growth.
NVM is currently raising its third £25 million generalist VCT fund – see evcj September, page 23 – and has to date raised over £100 million from VCT investors. Among the funds managed by NVM is Northern Investors Company, which was launched as a private investment company in 1984 and has been listed on the London Stock Exchange since April 1990. From May 1, 1990 to November 1, 2001, the fund achieved a share price total return to investors of 425 per cent.
Reflecting its continued growth, the firm has recently recruited three investment executives in as many months. Jonny Allatt comes from KPMG’s corporate finance division and was appointed to the Newcastle office, Karl Harridence joined the Reading office from Ernst & Young and Richard Gibson, who was a co-fund manager of Ley Gee’s technology-based VCT is based in the Edinburgh office.