RBS launches new VC fund

The latest addition to Royal Bank of Scotland's private equity business will invest in enterprise application and communication software, internet infrastructure and hardware infrastructure.

Royal Bank Private Equity Group has added to its private equity businesses with the launch of Royal Bank Ventures Limited, which will target high growth technology, media and telecoms companies in the UK and Europe.

The fund will make investments typically ranging from £1m to £10m covering early-stage investment through to pre-IPO, although larger deals will also be considered. It will target businesses developing enterprise application software, internet infrastructure and communication software and hardware infrastructure, including wireless applications and technologies.

Bill Troup, managing director of Royal Bank Ventures, said: “The timing of our launch couldn’t be better. Many funds are seeking to conserve cash or raise new funds and prospects of raising capital on the public markets have deteriorated. A major strength we have is the commitment of the Royal Bank of Scotland and the long-term funding stability that it provides.”

The fund has already completed its first deal. It led a syndicate of investors to £5m first round of financing for Stortext, a virtual document storage and management company that converts documents into digital form and provides secure on-line access and retrieval. Other investors included BancBoston, Scottish Equity Partners and LICA.

Royal Bank Ventures has investment executives based in Edinburgh and London. Royal Bank Private Equity Group businesses include: Royal Bank Private Equity Ltd, NatWest Development Capital Ltd and Asset Management Services Unit.