British Business Financial Services Limited, the service arm and a wholly owned subsidiary of the British Business Bank plc (BBB), has been selected by the Local Enterprise Partnerships and the Department for Communities and Local Government (DCLG) to act as fund of funds manager to implement regional access to finance schemes across the Northern Powerhouse Investment Fund and Midlands Engine Investment Fund regions. These regional schemes are partially funded by the European Regional Development Fund (ERDF) component of the European Structural and Investment Funds (ESIF), for which DCLG is the UK’s managing authority.
BBB believes that in some cases it can help local areas achieve greater value for money from ESIF-backed funds by aggregating them into fund of funds operating at a regional level. It can do so by achieving economies of scale in management of the underlying product funds, bringing BBB expertise to bear to support their objectives, and enabling higher quality investment decisions to be made across a wider overall pool of potential SME applicants. Any BBB involvement would always be subject to a value for money assessment and, in particular, to the proposed funds having sufficient scale.
Subject to an additionality assessment, BBB may be in some instances be able to contribute extra funding from its own resources to help facilitate investment decisions being made across a wider geographical area than would otherwise be the case.
Any additional funding from BBB would be subject to appropriate due diligence (in particular regarding the investment strategy and output targets) and robust financial modelling being undertaken.
For further information contact Mark Hambly, Director, Venture Capital Solutions, British Business Bank, Tel: 0114 206 2136; Email: firstname.lastname@example.org