Invest NI Access to Finance February 2013

Growth Loan Fund (£50m) (DEBT/MEZZ) Development Fund I (£30m) (EQUITY) Small Business Loan Fund (£5m) (DEBT) Co-Fund NI (£16m) (EQUITY) Development Fund II (£30m) (EQUITY) NISPO Funds(£12m) (EQUITY) Deal size Up to £250k £500k £2m Provides Risk Capital funding continuum - from start-up to development capital up to £2m: ‘Enterprise Escalator’ - £12m NISPO funds (EQUITY) for seed and early stage LIVE £16m Co-investment fund (EQUITY) – based on Scottish model LIVE £50m Growth Loan fund (DEBT/MEZZ) initiative LIVE £5m Small Business Loan Fund initiative (DEBT) LIVE £60m (2 Funds of £30m) Development Funds (EQUITY) – up to £2m deal size – recognised equity gap in UK – OUT TO TENDER Invest NI’s Access to Finance Strategy

Funds and Fund Managers

NISPO Funds NISPO Funds – offering an ENTERPRISE ESCALATOR and managed by E-Synergy £10 million Invest NI investment - £5 million equity – Invest Growth Fund – early stage, £50k to £250k, 5 years investment period – private sector contributes 30% in any funding round - £2 million equity - £1 million each for QUB and UU – seed, up to £200k investment over a 4 years investment period - £3 million Proof of Concept grants, non university sector and complements university Proof of Concept scheme Investment Readiness and Showcasing events Currently seek an extension to Invest Growth Fund and Proof of Concept

Co-Fund NI To meet the gap in VC funding continuum between NISPO and Crescent II –funded by Invest NI; based on the Scottish Enterprise model. Aims to co-invest alongside business angels and other private investors – encourage Halo development and accelerate development of syndication. Angels / private investors lead the deal and set the terms; must demonstrate a identifiable funding gap of no more than 45%. Co-investment not exclusive to business angels but the primary target Average deal size between £250,000 and £450,000, although scope to go higher £7.2 million for investment from Invest NI, over 6 years, average 8 deals per annum, average deal co-investment £150k alongside c£200k of private investment. Clarendon Fund Managers have the contract – for services, not fund management. 12 deals completed to date and pipeline healthy.

Growth Loan Fund Minimum loan size of £50k with an estimated loans per annum; typically unsecured loans - interest rates typically 8.5% to 12% with an additional profit share Target loan size of £50k-£500k to support SMEs with growth potential Proposed as a 10 year project with lending over the first five years and realisation over next five years to complete collection £50m funding is in place - £25m from Invest NI and £25m from the private sector. Whiterock Capital Partners - a consortium led by Braveheart Investment Group are managing this Fund. Operational from June The first loans have been made and the pipeline is healthy.

Small Business Loan Fund Aim to provide loans of between £1,000 and £50,000 on a typically unsecured basis, at 8%-16% interest rates At the bottom end (up to c£25k) this is largely a social initiative – will include start-ups and social enterprises Some economic impacts anticipated above c£25k Ulster Community Investment Plc (“UCI”) has been appointed to manage this fund Launched Feb 2013

Development Funds Fund model approach – limited partnership with 10 year term – 5 year investment period. Aiming to do deals in 20 companies. Completes the dealflow chain given the equity gap in venture capital. Deal size £450k to £2million. Two funds of c. £30m each. Fund Managers will be required to raise private capital alongside the proposed £15m commitment being made by Invest NI. Tender for fund management now issued – closing date mid March 2013.

Summary Provides an overarching strategy for Venture Capital and Loan Funds Provides a continuum of funding (£1k-£2m) for early stage and growth companies Further details of funds available at: Contact Details for Invest NI Corporate Finance team: William McCulla (Director, Corporate Finance) – Helen Kirkpatrick – Allen Martin – Sinead Magee – Gillian McKenna –