Private equity firm NVM tables bids worth £20m

Feb 12 2010 by Peter McCusker, The Journal

INVESTOR NVM has put up £20m to acquire stakes in seven businesses saying the ongoing lack of bank appetite for lending is opening the way for private equity firms.

The Newcastle-based stock market- listed business is sitting on a £70m cash pile after realising value from a number of previous equity investments and raising additional cash from investors.

NVM chairman Tim Levett said the offers, which have all been made since the turn of the year, include three “substantial” investments and a bid for an equity stake in a North East company.

Mr Levett said: “In the last year we made a total of £10m of investments but demand for equity investments is now picking up.

“Since the turn of the year we have tabled bids worth a total of £20m for stakes in seven companies.

“The banks are still reluctant to lend at the level needed and people have come to realise that private equity has a role to play.

“In fact private equity is now the main route for many.

“Those businesses which have survived the last 18 months are facing an interesting competitive environment.

“They have proved they are stronger than their competitors, some of whom will have gone to the wall, and now have a larger market share.”