Braveheart Investments Regulatory News (BRH)

23 March 2012

Braveheart Investment Group plc

Acquisition of Neon Capital Partners Limited

Braveheart Investment Group plc ('Braveheart', the 'Group' or the 'Company') (BRH), the AIM-listed investment management group specialising in venture capital investments and investment services to business angels, high net worth individuals, family offices and public sector organisations has acquired the entire issued share capital of Neon Capital Partners Limited ('Neon') from NF Holdings Limited for £380,000, subject to a post-completion net working capital adjustment expected to be approximately £300,000, such consideration to be satisfied entirely in cash. Further details of the terms of the acquisition are set out below.

About Neon

Neon is a company authorised and regulated by the Financial Services Authority ('FSA') and operates from offices in Barnsley and Leeds. It was established in February 2010 to be the manager of the £48 million Finance Yorkshire Equity Fund (the 'Fund'). Neon has not traded and until immediately prior to the acquisition the management services for the Fund were performed by another company in the NF Holdings group, such arrangement having been put in place whilst Neon obtained the requisite authorisations from the FSA. Neon employs five staff and has one subsidiary company, which acts as the general partner to the Fund.

The Finance Yorkshire Equity Fund

The Fund, established by Finance Yorkshire as part of the European JEREMIE Fund initiative, is scheduled to run until 2018 with an investment phase that lasts until December 2013, unless extended, and provides equity and equity-linked finance to small and medium-sized enterprises ('SME's) in the Yorkshire and Humber region. Both Finance Yorkshire and the FSA have given approval for change of control, as required under the Fund's management agreement and the Financial Services and Markets Act 2000, respectively.

Rationale for the acquisition

The acquisition is in line with the Company's strategy of growing fee income by increasing funds under management and consolidates Braveheart's position in Yorkshire where it already operates the Viking Fund, the Viking Loan Fund, and the Yorkshire Association of Business Angels.

Principal terms of the acquisition

Under the acquisition agreement, the Company has purchased the entire issued share capital of Neon for £380,000 in cash, subject to a post-completion net working capital adjustment which will also be satisfied in cash following the preparation of completion accounts and which is expected to be approximately £300,000.

Other matters

Andrew Burton, the Managing Director of Viking Fund Managers, will be responsible for the enlarged regional business.

This is the fourth acquisition Braveheart has made since it was admitted to AIM in 2007.

Geoffrey Thomson, Chief Executive of Braveheart Investment Group, said: "This acquisition is an important milestone for the Company and is a direct result of our strategy to grow the fee earning side of our business by increasing funds under management. Neon comes with a fund management contract that provides us with long term visibility of earnings whilst consolidating our position in Yorkshire. We have worked hard on delivering this acquisition, which is the result of the intensive negotiations we referred to in our interim statement made at the turn of the year.

"When taken together with our recent £50 million fund management award in Northern Ireland, these new funds under management advance us significantly towards our goal of achieving regular sustainable profits from our fund management operations."

Further information:

Braveheart Investment Group plc

Seymour Pierce Limited (Nominated Adviser and Broker)

Merchant Securities Limited (Joint Broker)

Media enquiries:

Allerton Communications

Notes to Editors

Braveheart Investment Group makes and manages investments in young, emerging British companies, specialising in building portfolios for business angels, high net worth individuals, family offices and public sector organisations. Braveheart was founded in 1997 by a small group of investors to encourage and syndicate investments in privately held companies that offered opportunities for significant growth. Fifteen years on, Braveheart is a public company with a demonstrable track record in SME investing, an established client base and various funds under management. The Group has offices in Perth, London, Yorkshire and Jersey, and franchises in Dubai and Manchester.

For more information: www.braveheartinvestmentgroup.co.uk