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Focus on creating real business value

“Businesses often only think of loans when they’re considering investing in their growth, but even the best business plan can be thwarted by inappropriate or inadequate investment,” Coles explains. “I’m keen to encourage businesses to match the right funding package to their business plan right from the start and consider the potential benefits equity investment can offer.”

Structured equity investments can often free up vital cash-flow and enable businesses to focus on creating real business value. John Partridge’s new management team is using a substantial equity investment from FW Capital and business angel, Anne Holliday to fund the acquisition and re-launch of the renowned country clothing brand.

Businesses often need a number of investment rounds to achieve their growth plans, so the backing of a long-term investor can also be really beneficial.

As Coles points out: “For many businesses, one funding round isn’t always enough. A number of properly structured investment rounds from a supportive long-term investor can make a major contribution to future success. It’s important to be realistic about the funding levels needed.”

FW Capital is keen to ensure businesses have the best chance of achieving their long-term goals. This could mean investing over a number of rounds as well as structuring deals with co-investors to ensure businesses leverage the right funding package at the right time.

“Initially there was a lot of pent up demand for investment and I’m pleased to say that we’re continuing to experience strong interest, particularly from advisors,” Coles concludes. “I’ve also been impressed by both the number and quality of adviser-led deals I’ve seen and I’m keen to work with even more advisors.”

To talk to FW Capital about a business with growth plans, contact us.

This viewpoint was first published in 2011. Joanne Pratt replaced Andrew Coles as FW Capital's Fund Manager in the North East in 2012.