Edge Creative Enterprise Fund is designed to address “the funding drought” in the arts industries, and brings together private investors with funding from the government’s British Business Bank.
It is the first fund of its kind, and will offer capital and mentoring to small and medium-creative companies. Edge said it was looking to target scaleable businesses with intellectual property assets, which have the potential to benefit from the growing digital economy.
The fund is targeting a minimum three times return for its private investors over its seven to 10 year life.
David Glick, Edge Investments’ chief executive, said: “The creative industries are one of the UK’s great success stories, an area where Britain excels. Our view is that a high degree of sector knowledge mitigates risk and also allows us to assess the most promising opportunities and most talented executives," adding:
There are nearly 160,000 creative industries businesses in Britain yet despite being in this high growth sector, many of them find it difficult to attract adequate capital to maximise their potential. Our new Edge Creative Enterprise Fund aims to fill that funding gap. Edge Creative Enterprise Fund will bring much-needed growth capital to smaller businesses in the creative industries, and we are grateful to the British Business Bank and all the fund’s investors for their support.