Up to 10 million new ‘D’ shares will be issued in each fund, with investor subscriptions to be divided equally between the two. The subscriptions will be invested in an entirely new portfolio of investments.

Stuart Veale, MD of Beringea, says, ‘We believe that the investment environment for small UK companies remains positive, despite the current market uncertainty.’

He adds that valuations of potential investee companies have reduced significantly since the onset of the credit crunch, ‘in part due to banks’ unwillingness to provide SMEs with financial support’.

The minimum investment in the offer is £5,000, and applications received by 2 January 2009 will benefit from a one per cent discount.