MTI reaches first close for spinouts

Fund

Technology investment specialist MTI has joined forces with The University of Manchester to launch a fund to invest in spinout opportunities from the UK's largest university. UMIP Premier Fund has secured EUR42m for its first close, with a target of EUR65m expected within a year. The figures make it Europe's largest institutional fund to have a single university focus.

The fund is structured as a 10-year limited partnership vehicle, with the capacity for extensions. The terms are described as standard, with a 20% carry and 8% hurdle rate. Management fees are set at just above 2%.

Proskauer Rose advised the University of Manchester on the fund.

Investors

Investors come from UK and European institutional and supranational investors and include the European Investment Fund (EIF), NESTA (National Endowment for Science, Technology and the Arts), and Co-operative Insurance Society.

Investments

UMIP will initially invest between £250,000 and £750,000 in spinouts from the University of Manchester, but has the capacity to continue backing these companies with further funds of up to £2-3m. The fund anticipates committing to a total of 20 companies.

People

Ernie Richardson is managing partner at MTI. Matthew Hudson led for Proskauer Rose. Clive Rowland is the CEO of UMIP and Professor Rod Coombs is the vice president for Innovation and Economic Development at The University of Manchester.

Name: UMIP Premier Fund

First close: EUR42m

Focus: Spinouts

Contact: Ernie Richardson

Address: MTI

Room 212

MWB Business Exchange

1 Berkeley Street

London W1J 8DJ

UK

Tel: +44 20 7016 9516

Advisers: Proskauer Rose (Legal).

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