Merseyside Pension Fund is one of the main backers in the new £65m SME investment fund to be deployed by private equity outfit, Foresight Group. Tony McDonough reports

Merseyside Pension Fund (MPF) is backing a new £65m find aimed at investing in small and medium enterprises (SMEs) in Liverpool city region and across the North West.

Along with Greater Manchester Pension Fund and Clwyd Pension Fund MPF is providing cash for the Foresight Regional Investment III LP, the latest pot of cash raised by private equity outfit, Foresight Group.

It comes off the back of the Foresight Regional Investment LP’s success in the North West which has targeted investment in SMEs in the region valued at up to £30m. It has helped create more than 600 new jobs in growing SMEs with the first two exits returning 6.1x and 5.6x money respectively.

The new fund has a flexible mandate and can deliver buyout, minority equity release and growth capital transactions. Foresight currently manages five regionally focused investment funds.

It will be managed by Foresight’s collegiate nationwide private equity team, with growth in Foresight’s North West office planned to support its deployment. The predecessor fund has invested in more than 20 local companies, working closely with management in each case to support their growth plans.

However, the company says the region remains underinvested and COVID-19 has materially widened the equity gap and only increased the opportunity for the fund to have a strong positive impact on the local community.

James Livingston, partner at Foresight, said: “We are delighted to be welcoming both new and returning investors to the fund, which will continue to address the gap in the market we have demonstrated with its predecessor fund.”

Claire Alvarez, director at Foresight, added: “Over the last five years, we have worked closely with the local community to invest in a range of companies, backing excellent teams and their sustainable growth plans. 

“The impact of our activities on the local market is clear and we look forward to continuing this success with this fund.”

Osborne Clarke acted as legal counsel to Foresight Group.