THE head of a private investment company is calling on fellow business angels to support The Social Impact Co-Investment Fund as it launches in the North-east.

Middleton Enterprises owner Jeremy Middleton was one of the keynote speakers at the regional launch of the fund, which is aiming to enhance the supply of finance to the social enterprise sector.

The national Fund, managed by the FSE Group, provides loans of between £25,000 and £100,000 to social enterprises on a match-funding basis alongside investment from private sector sources, such as angel investors.

The fund will encourage the active participation of the business angel investor, who as well as money, will bring skills, experience, contacts and time commitment to the business.

The launch took place in Gateshead, with Jeremy Middleton and Sally Goodsell, chief executive of the FSE Group, as keynote speakers. Mr Middleton said: “It will help the social enterprise sector expand and make a bigger impact on the economy as well as encouraging social philanthropy.

“Social enterprises and ventures that have the ability to make an adequate return for an investor are not mutually exclusive and I would encourage investors to support this initiative.

“Social enterprises may experience difficulties in obtaining finance from banks and other traditional financial institutions. This fund will enable them to access capital that will allow them to make a bigger positive impression on their communities and the arenas in which they work.”

Sally Goodsell said: “We believe many business angels are keen to diversify their portfolios of investments and that, with the right structures, the social enterprise market can benefit from this source of funding and the skills, experience and expertise that are available from a private investor.”

Finance Tree is a key regional partner working with the FSE Group to help companies access the new Social Impact Co-Investment Fund.

Matched funding, in the form of equity or loan investment, from private sector sources must be provided, of a sum at least equal to the level of the loan from the fund.

Where the fund considers the social impact and commercial viability to be strong, it will seek to work, via partners, to assist the applicant in identifying and securing the required angel investment.

Nationally, the fund is managed by the FSE Group, with Resonance as lead partner and supported by NESTA and PANAPHUR.