A consortium of retail entrepreneurs has united to create an investment fund to support fledgling UK retail businesses.

The venture, which is supported by a panel of industry experts including Clarks chairman Peter Davies, Martin Toogood – formerly of Ilva, Habitat, Heal’s and B&Q – and Charles Tyrwhitt founder and boss Nick Wheeler, is backed by investment bank Spayne Lindsay.

Davies – formerly chief executive of Rubicon, which owned Principles and Warehouse – said: “This fund is being launched at a key time for small UK businesses which are trying to establish themselves in the tough current market. I am delighted to be part of such a strong team of business leaders who are determined to support the future of the consumer and retail space.”

The Spayne Lindsay Consumer Brand Fund will target up and coming businesses to develop them into the brands of the future. Retailers and brands will benefit from a cash injection and the expertise of the entrepreneurs.

The fund will typically inject between£1m and£2m into its ventures and aims to amass a£10m investment war chest. It stands at£1.5m so far.

The launch of the fund is welcome news for hard-pressed retailers and a sign that there is still backing available for UK retail businesses. The fund will be managed by Spayne Lindsay Asset Management.

Spayne Lindsay acted as adviser to Neal’s Yard Remedies on its sale to the Kindersley family in 2005 and to Ilva on its debt restructuring and acquisition of ex-M&S stores in the same year.