VC makes 2x return

The HSBC UK Enterprise Fund, managed by Midlands-based VC firm Midven, has exited Autochair Limited, a provider of driving aids for people with disabilities.

The fund has achieved a two times return on its investment and an IRR of 15%. The £6.5m HSBC fund for the Midlands was launched in 1992 by HSBC to invest in venture capital in small and medium-sized companies in the West and East Midlands. Investors in the fund include HSBC and the European Investment Bank.

The company’s sales are said to have quadrupled since Midven has been an investor and the number of staff has increased from 11 to 31.

The Autochair realisation is the second exit the fund has made this year. In early 2009, the fund exited Malvern Tyres which brought an IRR of 18% over a nine years.