Endless, a Leeds-based private-equity group, has established a fund to target companies with a turnover of around £10 million.
The Enact II fund (
www.enactfund.co.uk) is led by investment director Chris Cormack (pictured), who said: “Endless has got a great reputation, not just in Leeds but nationally too. It has grown exponentially from a ‘pledge’ fund to a £525 million one. I
In 2013, we saw a gap in the SME market. There were some institutional funds coming in, but they were limited, and there were very few options for companies that are not in the £1 million EBITDA (earnings before interest, taxes, depreciation and amortisation) area. We are set on filling that gap, and we have an allocation of around £25 million for investment.”
Mr Cormack said that the fund will be looking for “challenged businesses that do not fit the lending criteria of mainstream lending or private equity. They are the businesses we like.”
He also said that he wanted “would-be business owners not to be concerned about making direct approaches. We know we are going to see problems, and some management teams are embarrassed to be talking to us; they tell us it implies that they are failing. They say needing capital and investment is embarrassing, but it is nothing to be embarrassed about; there is a problem, and they are doing something about it.”