Liverpool-based smalls firms debt and equity funding provider MSIF announces new strategy to include the launch of a new debt fund and the outsourcing of its next private equity fund. Tony McDonough reports
Merseyside Special Investment Fund (MSIF) has unveiled a new strategy that will see changes to how its funds are run as well as to its management team.
Founded in 1994, MSIF is a not-for-profit organisation that has become a cornerstone of the small business finance ecosystem in Liverpool city region. It operates out of The Plaza in St Paul’s Square in Liverpool city centre.
Through initiatives including River Capital. Gateway Angels and the Liverpool City Region Finance Hub, MSIF has spent three decades committed to supporting SME growth and building a “thriving, innovative regional economy”.
This new approach will see the expansion of debt funding provision across the region. Debt funding is its largest area of activity by volume. To date, it has deployed more than £104.8m in debt finance to 1,857 SMEs across the region.
This will increase capacity and respond directly to the demand it sees from SMEs across Liverpool city region who require flexible, accessible finance to start, scale and grow.
A new debt fund is expected to be launched in the second half of the year and will be managed by the debt team led by John Gray at River Capital.
As part of this strategic shift, the management of MSIF’s next private equity fund will no longer be undertaken in-house with the management of new funds put out to competitive tender. MSIF plans to launch the new equity fund in the first half of 2027.
This transition will result in a small number of River Capital’s executive team leaving the organisation. MSIF acknowledges their valuable contribution and wishes them well in the next stage of their careers.
Louise Towers, group chief executive of MSIF, said: “This is a confident, board-led decision rooted in what the market is telling us.
“Demand for debt funding from SMEs across Liverpool city region is significant and growing — and we are uniquely positioned to meet it. Our debt finance team is where we have the greatest reach, the deepest expertise and the biggest opportunity to deliver our mission to support the growth of the city region’s economy.
“MSIF has been backing Liverpool city region businesses for 30 years. This new strategy is about ensuring we are best placed to do that for the three decades and beyond.”
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MSIF Chair Neil Ashbridge added: “MSIF recognises the need to provide a range of financial products to help SMEs in the city region grow and to meet their full potential.
“These changes will enable MSIF to continue to provide equity products and at the same time assist in meeting the increasing demand for debt funding from SMEs across Liverpool city region.
“We remain committed to strengthening partnerships across the city region by working with universities, education providers and funding partners to support enterprise growth and to ensure businesses can access appropriate finance throughout their journey.”