Infinity Asset Management has secured its first multi-million pound deal by investing in a new invoice discounting and factoring company, Positive Cash Flow Finance.
The Manchester-based private equity house has invested £2m into Positive, which began trading just a few days ago on December 1.
David Smith and Phil Chesham have both left senior management posts at Manchester-based City Invoice Finance, co-founded by Smith, to set up the new venture.
They have lined up two further industry experts to join them in due course and the company will be headed up by some of the region’s most prominent businessmen, Infinity says.
Positive will specialise in invoice discounting and factoring, and initially target small-to-medium-sized-enterprises with a turnover of £500,000 or more.
Infinity, which launched in January 2007 with an initial fund of £20m, has invested £2m from its own fund into
Positive Cash Flow Finance, with a further £25m coming from Lloyds Bank.
Daniel Finestein, managing partner at Infinity, said: “This is a substantial first deal for Infinity, both in terms of its nature and financials.
"It sends out a very clear signal to the market of our commitment to invest in good quality, dynamic businesses.
“With the wealth of knowledge and expertise that the team brings to the business, Positive Cash Flow Finance will have one of the most experienced independent boards in its sector – not just in the North West, but in the country.”
David Smith, managing director of Positive, said: "We’re delighted with the involvement of Infinity.
"By working together we’ll be able to offer a truly unique funding proposition to the market – invoice discounting linked to the ability to provide equity."
Infinity was advised by Paul Jefferson at law firm Halliwells whereas the management team was advised by Paul Lockett at Lockett Loveday McMahon.
© Crimson Business Ltd. 2007
