Merchant House Finance (MHF) has launched a
£2.5 million fund aimed at struggling businesses, in a move that
reflects its transition from a lease brokerage to a turnaround
specialist.
Companies that borrow money from City-based
MHF fund are charged 12 percent interest, and do so in exchange for
giving up some equity in their business. Investors in the fund earn
9.75 percent interest on their money.
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The fund, which was set up by John Lutterloch,
the chairman and chief executive of MHF, and its parent, AIM-listed
Merchant House Group, sits in conjunction with Merchant’s new
strategy of offering corporate finance, stock broking and wealth
management, as well as asset finance.
Using a corporate bond structure, MHF recently
bought a 51 percent stake in struggling Surrey-based Countryliner
Coaches, which previously held asset finance facilities with
Merchant.
Lutterloch, who believes the “time is right to
build the group’s leasing business into a ‘super broker’ status”,
plans to expand his operations so it covers Bournemouth, Bristol,
Norwich, Penarth, Colchester, Swansea, Nottingham, Poole and
Dublin, as well as London.
This will be achieved through “acquisitions
and strategic partnerships”, he added.
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By GlobalDataMHF recently hired Matt Goddard, previously of
GMAC and Landisbanki, and Colin Hazel, the former Managing Director
of RVI, the lease insurer.
Brendan Malkin
