EQUITY FOR SME's
The ESCE FUND has been established to invest between $10 million and $50 million into the emerging private business market where it is believed there is a unique opportunity to make substantial returns from patient equity participation across a wide range of industries.
nem through its active participation with a wide range of private business has become increasingly involved in the process of assisting businesses to access equity. Not only is this process very inefficient, it is often embarked upon without the confidence that there is a reliable source of relatively patient equity available.
The private business market is also being increasingly deprived of traditional bank funding through reduced LVR levels and the banks increasing reluctance to lend against working capital. Many businesses are finding themselves deprived of funds while others cannot access funding to fuel their expansion.
Traditional Private Equity Funds are seen to compete for attractive deals of a certain size and are very short term focused, or are industry specific and operate a portfolio approach to losses and successes.
Additionally, traditional Private Equity Funds have not demonstrated that they are capable of managing investments in this space. The Investment Managers do not have the time to devote to smaller businesses and the transaction costs are similar to larger businesses making the process of investment inefficient. Another issue is that the depth of management in smaller businesses is often deficient in one or two key areas that are critical to achieving profitable growth within the required time frames.
Not withstanding these constraints nem has become increasingly convinced that the private enterprise market represents a unique opportunity to make substantial returns from patient equity participation across a wide range of private companies and industries.
As a consequence the firm went about establishing a fund that could address the major inefficiencies and down falls of investing in emerging private businesses and could provide a platform for significant tax exempt returns for investors.
The ESCE FUND is the result of many years of work and the experiences gained from working with literally thousands of businesses. While it is closely aligned to nem it remains an open fund, independently owned and operated in accordance with the highest protocols and standards of corporate governance. It is also established for the exclusive benefit of the investors and investees and will operate with very low administrative costs relative to most funds.