What type of business will NEEMF invest in?
The Fund can only invest in businesses based in the North East. Businesses may operate outside the region but must hold premises or be based in the North East. The Fund is open to applications from all industrial sectors All applicant businesses will need to be limited companies so that they can issue shares.
Why does NEEMF have to invest alongside private investors / business angels?
Funding must be provided at fully commercial rates under European “State Aid” rules to prevent giving businesses in one member state a commercial advantage over similar businesses elsewhere.
The Fund must prove it is investing at fully commercial rates but because there are so few commercial investors operating at this low level there is no established market rate. By insisting that at least half of the funding is provided by an independent private investor at the same price and on the same terms, the Fund can prove that it is investing at a price set by the commercial market.
What do you mean by ‘Private Investor’?
A private individual who is looking to take an equity stake in an unquoted Company and who is independent of that Company, with deals being structured on a clear commercial basis.
Can the Fund make loans?
No, the Fund can only make equity investments which would usually be in ordinary shares of the investee Company although it is possible to structure a deal which includes a mixture or ordinary and redeemable preference shares.
Can NEEMF back MBIs and MBOs?
Yes, providing the matching private sector funding is from an independent investor on commercial terms.
How do I apply?
First check that your business meets the basic criteria.
If you meet the eligibility requirements please send your business plan and supporting financials to North East Equity Matching Ltd, Portman House, Portland Road, Newcastle upon Tyne, NE2 1AQ or via email to s.thorpe@neemf.co.uk