michelle howell reif senior manager scottish enterprise
DESCRIPTION
Scottish Investment Bank was established in 2010 as an expansion of Scottish Enterprise’s investment team We support economic growth by increasing the supply of equity finance to Scottish businesses, including foreign direct investment, and helping more companies access finance via our Financial Readiness team. Our aim is to grow Scotland’s private sector funding market for early stage and expanding SMEs with growth and export potential to ensure they have access to growth capital when it is needed. Our investment funds are available to businesses throughout Scotland, including the Highlands and Islands Scottish Investment Bank is the investment arm of Scottish EnterpriseTRANSCRIPT
Michelle HowellREIF Senior ManagerScottish Enterprise
Scottish Investment Bank
International 2016 Low Carbon Heat and Water Conference and Showcase
Michelle HowellSenior Investment Manager
• Scottish Investment Bank was established in 2010 as an expansion of Scottish Enterprise’s investment team
• We support economic growth by increasing the supply of equity finance to Scottish businesses, including foreign direct investment, and helping more companies access finance via our Financial Readiness team.
• Our aim is to grow Scotland’s private sector funding market for early stage and expanding SMEs with growth and export potential to ensure they have access to growth capital when it is needed.
• Our investment funds are available to businesses throughout Scotland, including the Highlands and Islands
Scottish Investment Bank is the investment arm of Scottish Enterprise
SIB Products & Services
•Specialist support to help businesses with growth and export potential identify the most appropriate sources of finance and develop fundable propositions.FINANCIAL READINESS
•Team of experienced portfolio managers who work alongside our co-investors and account managers to support management teams of investee companies deliver their growth ambitions.PORTFOLIO MANAGEMENT
•Available to seed, start-ups or companies planning expansion. We can invest between £10k and up to £1.5m cumulatively in deal sizes generally up to £10m. We co-invest with Accredited SCF Partners.
SCOTTISH CO-INVESTMENT FUND III
•Available to seed, start-ups or companies planning expansion. We can invest between £10k and up to £2m in deal sizes generally up to £10m. We co-invest alongside a range of investors. SCOTTISH VENTURE FUND III
•REIF provides loans, equity and guarantees for projects with funding gaps. REIF will consider projects that support the delivery of energy from a renewable source
RENEWABLE ENERGY INVESTMENT FUND
•This fund provides commercial loans for projects that will develop or expand the sorting, reuse/repair and reprocessing capacity for waste materials in ScotlandSCOTTISH RECYCLING FUND
•Managed by Maven Capital Partners LLP, the fund provides mezzanine loans of between £250k - £5m to eligible established companies generating turnover. SE is a cornerstone investor. THE SCOTTISH LOAN FUND
•Managed by Epidarex Capital, this fund invests into innovative Scottish life science and health technology companiesEPIDAREX CAPITAL
Our products and services help entrepreneurial management teams to create globally competitive companies in Scotland
Helping companies get ready to fund raise
Our Financial Readiness team works with companies to:
• Guide them through complexities of various finance options
• Identify most appropriate funding package• Support them in securing finance• Provide export finance advice and support• Provide them access to relevant public sector
support Get funding
Get ready
Get information
Financial Readiness Support
Fund characteristics
Fund Scottish Co-investment Fund III
Scottish Venture Fund III
Deal sizes £20k - £10m £20k - £10m
SE Investment £10k - £1.5m (cum) £10k - £2.0m
Key Features Deals are led by Accredited Partners with SIB investing up to 50% of the total funding package, subject to eligibility.
Non partner fund - deals are led by a private sector investor, with SIB undertaking independent due diligence.
Funding – Equity Funds
What is REIF?• Launched in 2012 and funded by the Scottish Government
Why REIF?• To promote energy from renewable sources; and • To drive further investment into key industry areas.
Who delivers it?• SE, on behalf of Scottish Government and HIE (‘Team Scotland’)• REIF is a pan-Scotland fund
Who can receive funding?• Companies (any size) and non-profit community groups
Funding – Renewable Energy Investment Fund
What kind of renewables are eligible?• Marine – Wave & Tidal• Community owned renewables• District heating from a renewable source• ‘Other’ (case by case)
What forms of finance do we provide?• Equity• Debt (loans)• No minimum or maximum – we gap fund alongside private sector• Shared risk model• REIF will not support early stage R&D projects or sub-scale prototype
devices
Funding - How does REIF support projects?
• Established March 2011
• Current fund capital value - £113m
• Public sector capital (includes ERDF & HIE) - £55m
• Investors – Lloyds, RBS, Santander, Clydesdale, Strathclyde Pension Fund, Aberdeen City Council Pension Fund
• Independent Fund Managers – Maven Capital Partners• niche product• targeted at growth and export companies• mezzanine loans £250k - £5m+• SMEs annual turnover of £1m+ (lower on case-by-case basis)• investment to date £41.2m (c. £52.6m committed) • 22 investee companies
Funding – Scottish Loan Fund
Portfolio Team
Work closely with management teams, co-investors and SE & HIE colleagues
Support development of growth companiesagree and deliver strategyshape and enhance management and board compositionappoint Non Executive Directorsaccess to networks and contactsSecure wider SE support – AM, SDI, Innovation support
Integral part of Account Teams – joined up/value add/team Scotland
Seek to maximise economic and commercial returns
SUPPORT
“Across Scottish Enterprise we enable companies to successfully innovate, commercialise, enter international markets and to connect with experienced investors that can add value to their business”
• In 2014/2015 we invested £66.5m in over 100 Scottish companies• This investment was made alongside £99m private sector investment in our core funds & £64.5m alongside REIF • Our investment activity generated £9.5m of income, which is recycled back into providing SE support services for companies• We helped over 400 companies get ready to raise finance• We now have a strong portfolio of 275 companies across a broad range of key growth sectors
Last year we doubled our investment on the previous year and increased our portfolio of companies
Active portfolio management
Achievements so far
Key Messages
• SIB is the investment arm of Scottish Enterprise with a remit to ensure growth-oriented SMEs in Scotland have access to growth capital
• Operates across a number of sectors • A range of products including flexible equity funds to
support early stage and expanding SMEs with growth and export potential
• Provide ongoing support for the development of growth companies
General enquiries 0845 687 8787
Web: www.scottish-enterprise.com/sib
Tweets at @scotent
Michelle HowellSenior Investment ManagerScottish Investment [email protected] 228 2080
Scottish EnterpriseAtrium Court, 50 Waterloo Street, Glasgow, G2 6HQ