Members of the executive team at River Capital are set to leave the investment firm as the Merseyside Special Investment Fund refocuses on debt funding provision.
Three roles are understood to be at risk at River Capital, the fund manager for MSIF, a not-for-profit organisation founded in 1994 and described as a cornerstone of the small business finance ecosystem in the Liverpool City Region.
Louise Towers (pictured) was recently appointed as group CEO at MSIF, which backs initiatives including River Capital, Gateway Angels and the Liverpool City Region Finance Hub.
Announcing a new strategy to help more small companies grow and create jobs across the region, MSIF said it is to expand its SME debt funding provision while opening the management of its next private equity fund – expected to be launched in the first half of 2027 – to an external tender process rather than running it in-house.
This transition will result in a ‘small number’ of River Capital’s executive team leaving the organisation.
BusinessCloud understands negotiations with the individuals in question are ‘ongoing’.
A statement said: “MSIF acknowledges their valuable contribution and wishes them well in the next stage of their careers.”
Debt funding is MSIF’s largest area of activity by volume. To date, it has deployed over £104.8 million in debt finance to 1,857 SMEs across the region.
A new debt fund is expected to be launched in the second half of the year and will be managed by the debt team led by John Gray at River Capital.
“This is a confident, board-led decision rooted in what the market is telling us,” said Towers. “Demand for debt funding from SMEs across the Liverpool City Region is significant and growing — and we are uniquely positioned to meet it.
“With over £104 million deployed to nearly 1,900 businesses, our debt finance team is where we have the greatest reach, the deepest expertise and the biggest opportunity to deliver our mission to support the growth of the city region’s economy.
“MSIF has been backing Liverpool City Region businesses for 30 years. This new strategy is about ensuring we are best placed to do that for the three decades and beyond.”
MSIF chair Neil Ashbridge added: “MSIF recognises the need to provide a range of financial products to help SMEs in the city region grow and to meet their full potential. These changes will enable MSIF to continue to provide equity products and at the same time assist in meeting the increasing demand for debt funding from SMEs across the Liverpool City Region.
“We remain committed to strengthening partnerships across the city region by working with universities, education providers and funding partners to support enterprise growth and to ensure businesses can access appropriate finance throughout their journey.”
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