Team appointed to oversee £125m investment fund

Aug 27 2009 by Peter McCusker, The Journal

ONE of the first investors in North East software success story Sage is to lead the team of financiers who will manage the region’s new £125m business investment fund.

Leading venture capitalist Robert Drummond has been appointed chairman of the JEREMIE Investment Advisory Board, earmarked to pump millions into about 850 businesses.

Mr Drummond, who cut his teeth in the venture capital world in the 1970s as head of the Newcastle office of private equity firm 3i, says the region is poised for a new and exciting era.

Mr Drummond, ex-chairman of the British Venture Capital Association, will be supported by experienced financiers including deputy chairman Sir David Chapman and board members Dr Anthony Henfrey, Richard Green, Peter Yendell and Robert Davies.

The board, appointed by One North East, will oversee investments of £125m over five years – an increase on the £100m of similar investments in North East businesses in the past 10 years – with the goal of creating 5,000 jobs.

Mr Drummond said: “This North East has changed immensely since the 1970s. It is no longer reliant on one or two industries and that is a great advantage for the region.

“The community also realises what it has to do to move forward and create new, successful businesses and that creates the right momentum and environment for entrepreneurs. We [Grosvenor Development Capital] were one of the first investors in Sage and there is no reason why JEREMIE cannot help create a company as successful.”

The JEREMIE fund, established with European and UK taxpayers money by One North East, starts next January.

The board will appoint fund mangers to invest in three areas – start-ups, technology businesses and to expand smaller firms – and monitor the performance of the investments.

JEREMIE is the first scheme of its type in England and any returns made on investments will be channelled back into more investments in the region.

One North East deputy chief executive Malcolm Page said: “I’m delighted we have been able to appoint such a talented and experienced board to oversee this important fund and their knowledge will prove vital in ensuring that the region gets the maximum benefits from the investments made.” The fund will comprise £62.5m from One North East and European Regional Development Fund with a planned £62.5m from the European Investment Bank.

MEET THE BOARD

CHAIRMAN, ROBERT DRUMMOND

Former chairman of the British Venture Capital Association (BVCA) combined with extensive senior experience in venture capital, including managing director of NatWest Ventures and Grosvenor Venture Managers and regional director of 3i.

DEPUTY CHAIRMAN, SIR DAVID CHAPMAN

Sir David’s extensive stockbroking and corporate finance experience with Wise Speke, Merrill Lynch and Union Bank Switzerland is combined with a strong background in venture capital and high profile contacts in the business sector in general.

DR ANTHONY HENFREY

Extensive senior venture capital, corporate finance and business angel experience in both the UK and the US. He is a specialist in petroleum and corporate turnarounds.

RICHARD GREEN

Former chairman of the BVCA with more than 20 years’ experience of managing private equity funds, investing in unquoted companies and fundraising.

PETER YENDELL

He has 20 years’ experience in venture capital, including roles at 3i (director and partner of growth capital business) and Endless (niche private equity company specialising in turnarounds) where he serves as chairman.

ROBERT DAVIES

He has a strong track record of successful entrepreneurial leadership roles at Arriva (former CEO) and Biffa (former chairman) and is currently a non-executive director of British Energy and Barratt Developments.