Downing is seeking to attract new operating partners as it looks to raise between £20m and £40m through EIS
The funds are in addition to £30m raised in previous EIS funding tranches that has been fully invested.
The group has more than £0.5bn across a number of EIS, VCT and IHT products - much of which has been invested in the sector – and states it can provide capital at a much higher LTV than traditional bank finance whilst avoiding the “loss of control often associated with private equity”.
Steven Kenee, who heads the licensed team at Downing, said: “Appetite to provide funding to the sector has picked up over the last few years with banks, private equity and direct investment (bespoke EIS, crowd funding etc) returning in force. This is clearly a good thing, as it allows good businesses who have been constrained by a lack of finance, to try and achieve their true potential. The lean times have led to significant improvements in quality of those business that have survived, many of which are now in a much better shape to take advantage of the renewed love of the sector by customers and funders alike.”
Downing’s business model is based on long term partnerships with good quality management teams and is seeking more operational partners to drive the continued success. It said there is not a specific type of operator or specific type of investment being sought.
