Strong investment returns have enabled Merseyside Special Investment Fund to increase support for regional businesses through River Capital, Gateway Angels and the LCR Finance Hub. Tony McDonough reports
Merseyside Special Investment Fund (MSIF) plans to increase its investment activity in 2026 following positive returns from its existing portfolio.
The not-for-profit organisation’s annual accounts for the 12 months to March 31, 2025, show total net assets of £48.7m, up from £44.5m in the previous year and representing a 20% increase since 2022.
Cash reserves have increased from £10.7m to £28.5m, primarily due to exits from previous investments. MSIF plans to redeploy this capital into SMEs across Liverpool city region and the wider North West through its fund manager, River Capital.
MSIF also plans to increase its investment in Gateway Angels and the LCR Finance Hub.
Louise Towers, MSIF’s group executive director, said: “We’re focused on recycling capital back into regional SMEs. As a not-for-profit with no shareholders or dividends, everything we generate goes back into supporting local businesses.”
Louise, who joined as a non-executive director in May 2024, moved into her executive role in December 2025 and oversees the Gateway Angels network and the LCR Finance Hub, which provides independent funding advice to SMEs.
River Capital, which operates several loan and equity funds under the leadership of Mark Borzomato, will benefit from the increased capital availability.
Established 30 years ago with European Objective One funding, MSIF was created to support Liverpool city region entrepreneurs. It became self-sustaining and proved particularly valuable following the 2008 financial crisis and COVID-19 recovery period when traditional bank lending became constrained.
“While we’ve expanded our geographical reach, the vast majority of our current investments remain within Liverpool city region,” Louise explained. “Our primary mission is supporting SMEs in this area, though we can invest beyond the region to maintain financial sustainability.”
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Louise noted that the accounts reflect “a strong year with some important exits” and emphasised the value of MSIF’s recycling fund model. She added: “We’ll be working with the River Capital to deploy this capital into regional SMEs.
“In what remains a challenging environment for businesses, we’re pleased to be driving positive momentum in the Liverpool city region economy.”