Enterprise Capital Fund
The Enterprise Capital Fund (“ECF”) is a government backed, institutional limited partnership designed to stimulate and support growth capital investment in the UK.
In 2008 MMC secured UK Government backing through a competitive tender to raise a £30 million Enterprise Capital Fund, in which the government invested £20 million. The remaining £10 million was raised from family offices and private investors, including the MMC team. The Fund takes the form of a conventional 10 year limited partnership.
The MMC ECF focuses on the same business sectors and company stages as all of MMC’s other funds. The ECF programme was introduced by the government to channel capital into companies requiring between £0.5m and £2m in growth capital, an area poorly served by the market. This funding gap is frequently referred to as the ‘equity gap’ and is the precise stage that MMC focuses on, evidenced by winning ‘Equity Gap Fund of the Year’ at the 2014 Investor Allstars awards.
The MMC ECF was deliberately structured to co-invest with MMC’s EIS Funds and participated in the same quality deals that MMC’s EIS Fund is known for.
The ECF has completed its investment period and is now making follow-on investments only.