Outsourcing company MITIE has launched a fund of £10 million to back new business start-ups in the UK.

Outsourcing company MITIE has launched a fund of £10 million to back new business start-ups in the UK.

The MITIE Entrepreneurial Programme is open to people from both the private and public sectors who want to create a business in the support services sector, according to a statement from the company. MITIE will take a minimum stake of 51 per cent in each new venture, and will back only start-ups that do not compete with any of the outsourcer’s existing businesses.

It is the first time MITIE has launched a fund, although the FTSE 250 company claims to have invested in the management teams of more than 80 companies using its ‘MITIE model’ since the business began 23 years ago.

MITIE chief executive Ruby McGregor-Smith comments under the ‘MITIE Model’ management teams take an equity stake of up to 49 per cent in the proposed business and are supported to grow over a five to ten-year period. It is anticipated that MITIE will eventually buy the business.
 
McGregor-Smith adds: ‘We are passionate about providing opportunities for people to develop their careers and grow successful outsourcing businesses. With the launch of this fund we hope to attract dynamic entrepreneurial teams that want to start mutually owned businesses which provide innovative services to their customers and create jobs in the UK.’

The fund is open until 31 March 2013.