Infinity Asset Management has secured its first multi-million pound deal by investing in new North West invoice discounting and factoring company, Positive Cash Flow Finance.

Positive, which launched on 1 December, will be headed up by some of the region’s most prominent businessmen. David Smith and Phil Chesham have both left senior management posts at Manchester-based City Invoice Finance, co-founded by Smith, to set up the new venture. They have lined up two further industry experts to join them in due course.

The management, who are regarded throughout the North West as highly experienced and well respected business finance specialists, are set to form a formidable team with the financial backing of one of the region’s fastest growing private equity funds.

David Smith, managing director of Positive, said: “We’re delighted with the involvement of Infinity. By working together we’ll be able to offer a truly unique funding proposition to the market invoice discounting linked to the ability to provide equity.”

Positive Cash Flow Finance will focus on providing funds for growth, MBOs, MBIs, acquisition and financial restructuring.

Infinity, which launched in January 2007 with an initial fund of £20m, has invested £2m from its own fund into Positive Cash Flow Finance, with a further £25m coming from Lloyds Bank.

Daniel Finestein, managing partner at Infinity, said: “This is a substantial first deal for Infinity, both in terms of its nature and financials. It sends out a very clear signal to the market of our commitment to invest in good quality, dynamic businesses.”

He added: “With the wealth of knowledge and expertise that the team brings to the business, Positive Cash Flow Finance will have one of the most experienced independent boards in its sector not just in the North West, but in the country.”

The new company will specialise in invoice discounting and factoring, and initially target small to medium sized enterprises with a turnover of £500,000 or more.

Smith said: “The establishment of Positive Cash Flow Finance affords us a unique and exciting opportunity to create a truly independent company. As a Manchester-based firm, with the financial backing of a city centre private equity house, this project is also very much a Manchester affair.”

Infinity was advised by Paul Jefferson at Halliwells. The management team was advised by Paul Lockett at Lockett Loveday McMahon.