Noble Fund Managers has held the first close of its second venture debt fund on £87 million.
The fund is very close to its £100 million target size and it is over twice the size of the firm’s first fund raised in 2003. The fund will be able to commit up to £350 million over its lifespan including reinvestments.
Mark Taylor, from Noble said, “The problems in the debt markets are not directly linked to the venture debt space, although in the short term they have a slightly positive effect as there is less pressure to look at lower rates from start-up.” Institutional investors may have more interest in venture because they will be cutting their commitments to hedge funds following the credit market problems, he said.
The fund will provide debt and working capital finance of between £1 million and £5 million to venture capital companies across Europe.
Noble’s first fund has committed over £40 million to 20 companies in eight European countries. The company has had three exits so far generating internal rates of return of 16.4 percent, 32.9 percent and 39.1 percent.