Three key members of the executive team at River Capital are to leave the investment firm as the parent Merseyside Special Investment Fund withdraws from venture investing and refocuses on debt funding provision.
Chief executive Mark Borzomato, Dr Marc d’Abbadie, head of venture, and David Walters, investment director of venture, who has been running a new AI Fund, are all to depart.
Announcing a new strategy to help more small companies grow and create jobs across the region, MSIF said it is to expand its SME debt funding provision while putting out the management of its next private equity fund – expected in the first half of 2027 – to an external tender process rather than running it in-house.
READ MORE: Starmer clears the way for Burnham premiership with emotional Downing Street resignation
This transition, MSIF said will result in a “small number” of River Capital’s executive team leaving the organisation.
A statement added: “MSIF acknowledges their valuable contribution and wishes them well in the next stage of their careers.”
Debt funding is MSIF’s largest area of activity by volume. To date, it has deployed over £104.8 million in debt finance to 1,857 SMEs across the region.
A new debt fund is expected to be launched in the second half of the year and will be managed by the debt team led by John Gray at River Capital.
Recently appointed MSIF group CEO Louise Towers said: “This is a confident, board-led decision rooted in what the market is telling us. Demand for debt funding from SMEs across the Liverpool City Region is significant and growing – and we are uniquely positioned to meet it.
“With over £104 million deployed to nearly 1,900 businesses, our debt finance team is where we have the greatest reach, the deepest expertise and the biggest opportunity to deliver our mission to support the growth of the city region’s economy.
“MSIF has been backing Liverpool City Region businesses for 30 years. This new strategy is about ensuring we are best placed to do that for the three decades and beyond.”
MSIF chair Neil Ashbridge added: “MSIF recognises the need to provide a range of financial products to help SMEs in the city region grow and to meet their full potential. These changes will enable MSIF to continue to provide equity products and at the same time assist in meeting the increasing demand for debt funding from SMEs across the Liverpool City Region.
“We remain committed to strengthening partnerships across the city region by working with universities, education providers and funding partners to support enterprise growth and to ensure businesses can access appropriate finance throughout their journey.”
