A £10m investment fund designed to support up-and-coming fmcg businesses has been hit by delays in securing investment.

The Spayne Lindsay Consumer Brand fund was launched in January with the intention of offering smaller businesses investments of up to £2m and advice from an expert panel, filling a gap where bank or corporate finance was traditionally hard to obtain.

Spayne Lindsay had been expected to complete raising funds by 3 April, but has now adjusted that deadline to mid-July. It blamed "technical difficulties" in securing a company to administer the fund for the delay.

Fundraising had to be suspended while it worked to find a replacement for its first choice, which pulled out as part of a wider withdrawal from funds.

Spayne Lindsay is now understood to have secured a deal for the fund's administration.

However, the delay has not hampered the fund's efforts to secure expert advisors and investors. The advisory panel, headed by former Tetley Tea boss Ken Pringle, has recruited several new members. Most notable is former CBI Director-General and Minister for Trade Lord Jones of Birmingham. Birds Eye CEO Martin Glenn, Diageo non-executive director Chris Britton and former United Biscuits CEO Malcolm Ritchie are also on the panel.

Recent tax changes were favourable to potential investors in the fund, said Spayne Lindsay co-founder Tom Lindsay. "Pension funds have lost their tax-deductability since the fund was launched," he said. "This makes funds based on the Enterprise Investment Scheme more attractive by comparison, as they remain exempt from both income and capital gains tax ."

Meanwhile, former Birds Eye COO Karl Mackenzie has co-founded a fund designed to buy out and turn around distressed businesses within 18 months. The Capital Recovery Fund targets UK businesses with sales of £10m to £200m that are under-performing or struggling with debt.