ESM Capital

Growth Fund 1


Join us to establish a new £30m institutional fund investing in technology-based and technology enabled scale-up companies in Scotland and the North of England

 01786 357598

Capital
Growth Fund

An opportunity to invest with experienced institutional investors.

A Collaborative
Approach

We are inviting investors to actively participate in the fund as Limited Partners.

The
Key Drivers

Striving to make a positive economic impact for all of our stakeholders.

The
Management

Dynamic team with complimentary skills and powerful networks in UK and international markets.

Introducing ESM Capital Growth Fund 1


We are a team of successful technology entrepreneurs and experienced fund management professionals who are launching a new and exciting capital growth fund (CGF1).

CGF1 is a £30m institutional fund which will be invested in technology-based and technology-enabled scale-up companies located in Scotland and the North of England. The fund will target early-growth and growth stage scale-up companies in these regions with a turnover in the range of £1m – £5m. 

We will make direct investments and will also co-invest with like-minded fund managers in the same space.

Our value proposition to investors in the fund:

Through CGF1 we will build a portfolio of investments in defined target sectors.  By investing alongside the CGF1 team and benefiting from the team’s track record of identifying world-class products and management teams, the fund will offer investors the opportunity to:

– participate in profit share

– diversify their own investment portfolio

– benefit from a strategy to de-risk via co-investment partners

– participate in coaching investee companies via the investee scale-up acceleration process

– benefit from R & D tax offset potential

Get in Touch

A Collaborative Approach


We are inviting investors to join us as Limited Partners in CGF1.

Our Limited Partners will be invited to work with the ESM Leadership Team as Scale-up Coaches, giving the opportunity to use their individual skills and experience to play an integral role in our Investee Accelerator Programme. We appreciate that not all of the investors in CGF1 will have the time or resource to dedicate to this process in full, so becoming a Scale-up Coach is optional. Whether our Limited Partners choose to take an active role or not, we are committed to provide complete transparency and will maintain a regular dialogue with all of our Limited Partners throughout the life of the fund.

The ESM team is reinforced by strong and supportive business networks in the UK, Asia, Australia and the USA.

The Opportunity


We believe that there is significant potential to add value in emerging tech hubs in the UK.

Backed by a supportive fiscal and regulatory regime, we believe that there has never been a better time to invest in technology scale-ups.

WHERE?

We have identified Scotland and the Northern Powerhouse cities and suburbs of Manchester, Leeds, Liverpool, Newcastle and Sheffield as fast-growing emerging tech hubs. These hubs already have well-established tech start-up and scale-up ecosystems in place to nurture entrepreneurial ventures and will provide the CGF1 with a regular flow of high quality investment opportunities.

SECTOR FOCUS?

Our aim is to maintain an appropriate breadth of sectors in the CGF1 portfolio. We will prioritise those sectors identified as having strong growth potential, particularly where our team has access to significant knowledge, expertise and experience. Our immediate focus will be on:

  • • Data analytics
  • • Artificial Intelligence
  • • Internet of things
  • • Banking, regulatory & insurance
  • • Digital infrastructure & security

SECTORS:

  • • Health and medical care
  • • Food, packaging and distribution
  • • Energy Management
  • • Construction technology

TALENT:

The UK has an exciting pool of entrepreneurial talent, particularly in the areas of technical expertise, financial services and leadership know-how. There is a wealth of talent emerging from the tech hub universities and technical colleges and the support of these institutions within our target regions is exceptional.

We are interested in entrepreneurs with companies at the scale-up stage of growth. In 2017, the Scale-up Institute estimated that there were 27,000 scale-up companies in the UK and around 10,000 of these were located in Scotland and the North of England.

Our network also confirms that there are significant pools of experienced leadership and board talent willing and enthusiastic to compliment investee management teams.

The CGF1 team has the experience to bring this talent together along with the investment required to build sustainable and valuable businesses.

The ESM Accelerator Programme


Our aim is to work with investees to scale-up, add value and monetise a well-balanced portfolio of companies within six to ten years, delivering enduring success and attractive returns on investment.

Once we have identified a potential investee company that meets CGF1 standards, the company will  initially be invited to join the first stage of an ESM Accelerator Programme, a twelve-week period of intensive mentoring by our Accelerator Team and our Scale-up Coaches. At the end of the twelve-week period, the CGF1 Investment Committee will decide on the viability of the company for the CGF1 portfolio. If successful, the company will receive investment from CGF1 and will progress to the development phase of the programme.

As member of our portfolio, an investee company will receive continuous mentoring and training from our Scale-up Coaches on its journey of strong long-term growth, including:

What are our
key impact drivers?

Maximising Performance

Our Leadership Team works collaboratively with investees. We believe that a targeted investment strategy in parallel with well-designed strategies to accelerate portfolio company growth will realise value and maximise returns for our investors, within an agreed time frame.

Creating Global Potential

Our mission is to drive ambitious, high quality companies out of sub-optimal performance allowing them to achieve their full potential by building scale and unlimited long-term success. Our UK and international networks are available to provide support and provide an insight into the nuances of expanding into new UK and international markets.

Gender Gap

We believe in equal opportunities for all and strongly support the need to fill an improving gender gap within the UK tech sector.

Delivering a local impact

We intend to have a lasting impact on the regions where we invest. Inward investment in technology supports local economies through job and business creation whilst reinforcing the region’s status as a tech hub, thereby attracting more investment.

Social Change

Technology can change lives for the better.  We are particularly interested in making lives easier by supporting advances in health and medical care through technology.

Respecting the environment

The  environment is important to us. We will respect the environment whilst conducting our own business and will prioritise investment in companies that provide environmental solutions through their products and services.

Integrity

We are committed to strong systems of corporate governance and compliance. Our Authorised Fund Manager, NCM Fund Services Limited is authorised and regulated by the Financial Conduct Authority and is providing full FCA compliance services and support to ESM Capital LLP.

Meet the Team

Our team consists of cashed-out tech entrepreneurs and experienced investment management professionals who have a proven track record of value delivery and strong entrepreneurial networks in the national and international tech communities. The CGF1 Team will be led by Managing Partner, Steven Morris.  Full details of the fund’s Leadership Team and Advisory Board will be announced shortly. The CGF1 Team will be supported by the diverse skills and experience of ESM Investments’ Advisory Group.

Managing partner

Click on Steven's image for his biography and to view contact details.

The Advisory Group

Click The Advisory Group member’s image OR click left and right arrows to view staff biography and view contact details.

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The Advisory Group is provided by ESM Investments Ltd.

ESM Investments Ltd

Based in Stirling, Scotland, ESM Investments Ltd, is an experienced and reputable investment syndicate manager which has deployed >£9m in seed and follow-on investment into early stage technology and technology-enabled companies since 2011. ESM maintains a lean and highly efficient operating model. Through its established extensive network in the technology ecosystem in Scotland and the North of England it receives a fast-flowing pipeline of attractive investment opportunities.

Link to the ESM Investments website

Invitation to investors:

ESM CGF1 is proving to be an attractive proposition to investors and with a substantial level of investment already in place, our aim is to launch the CGF1 early in 2019.

This includes commitments from UK institutional investors. We are looking to engage with large and medium sized corporate investors, Family Offices, public sector and other fund managers, including pension fund managers, to work together as a team to create value and long-term success.

Invitation to Investee's:

If you are a tech scale-up company and you meet the CGF1 investment criteria, contact us now to find out where and when we are running our Accelerator Programmes.

Interested?

Let's talk...

In the first instance, please contact Steven or submit the form below:

[email protected]

Office Address:11 Gladstone Place, Stirling, Scotland, FK8 2NN