MULTI-millionaire former car dealer Sir Peter Vardy has launched a venture to support growing companies.

Just three months after selling his stake in motor dealer Reg Vardy plc, Sir Peter has launched Vardy Venture Capital.

The £50m fund is ready to invest millions in new businesses or those that need capital to expand or market new products.

Sir Peter has identified a gap in the market for business funding of between £500,000 and £2m and his capital will help companies looking for that kind of investment.

The business is one-fifth of the Vardy Group of companies, which includes two more new enterprises run by Sir Peter's sons, Richard and Peter.

He said: "I have not been in a position to spend a lot of time with my sons over the years, so this is a good time to support them."

The companies are being bankrolled by the £150m Sir Peter made from selling his 28 per cent stake in Reg Vardy, the company founded by his father in 1923.

Sir Peter has recruited finance director Paul Edwards, former managing director of Bannatyne's casino, who was previously financial director of Bannatyne health and fitness.

The pair will identify suitable opportunities for investment. They will also advise companies where necessary.

Sir Peter, who unveiled his new business at the annual conference of the Entrepreneurs' Forum, of which he is a board member, said: "Vardy Venture Capital is a commercial enterprise, so will make a return on its investments.

"We will monitor the forecasted growth and sales rates people commit themselves to and will expect them to perform to their business plan.

"But as well as financial backing, we also have a lot of expertise to share that will benefit new or growing businesses.

"We've already had a number of opportunities presented to us and are looking to see where we can add value."

Together with the rest of the Vardy group, the venture capital division has moved into offices at Aykley Heads in Durham, which have been bought by Vardy Property Group, run by Sir Peter's eldest son, Richard.

The headquarters will also house the Vardy family charitable trust, the Vardy Foundation, which has donated millions of pounds to worthy causes since being established in 1989.

The Emmanuel Schools Foundation, which sponsors Emmanuel College, in Gateshead, The King's Academy, in Middlesbrough, and Trinity Academy, in Doncaster, and EC Educational Services, which builds the schools, will be based in Durham.

Sir Peter also said plans to fund another school were "on the drawing board".

The Vardy HQ will also be the North-East base of a motor retail business being developed in Scotland by Peter Vardy, Sir Peter's younger son. Sir Peter is prevented contractually from being involved in the motor trade for 12 months.