Northern businesses share in £180 million since the launch of second Northern Powerhouse Investment Fund

Businesses across the North have benefited from a total £180 million of investment since the launch of the Northern Powerhouse Investment Fund II (NPIF II).

With over 315 deals to date, the fund has directly invested £115 million into over 300 small businesses across the North of England, including across the North West. This is alongside an additional £68 million of private sector co-investment.

Delivered by the NPIF II fund managers, the investments have assisted in driving sustainable economic growth by supporting innovation and local opportunities for new and growing businesses across the North West.

Operated by the British Business Bank, NPIF II is a £660 million fund that provides loans and equity finance options for Northern smaller businesses that might otherwise not receive investment. The purpose of NPIF II is to break down barriers in access to finance by providing loans from £25k to £2 million and equity investment up to £5 million to start up, scale up, and stay ahead.

Since its launch, NPIF II has completed deals with some of the North West’s most exciting founders, helping businesses access the finance they need to unlock growth and new opportunities.

Sue Barnard, senior investment manager at the British Business Bank, said:

“The launch of NPIF II has been a resounding success and this latest £180m milestone reflects the hard work our fund managers have undertaken to ensure that transformational financing is going directly to the region’s businesses. The North West has always been a key driver of economic activity in the North, and the businesses that have already secured investment are indicative of more to come. It’s no secret that access to finance can unlock considerable growth for small businesses, so the message now is for entrepreneurs to get in touch and speak to our fund managers about taking that next step in their journey.”

Adam Kelly, co-managing director of Funds at the British Business Bank, said:

“The Northern Powerhouse Investment Fund II plays a vital role in increasing the supply of funding available to small businesses in the North of England. Whether it’s deep in the Northumberland countryside, or the heart of a vibrant city like Leeds, NPIF II is delivering early-stage finance to businesses operating across a host of sectors. With over £180m directly invested so far, over 300 businesses will be feeling the direct benefits of what access to finance can help achieve. This milestone is a sign of more to come and there’s no doubt we expect a greater number of entrepreneurs to get engaged and access the funds they need to take their business to the next level.”

Praetura, FW Capital, River Capital and GC Business Finance are responsible for delivering NPIF II funds across the North West, enabling ambitious businesses to access small loans, debt, and equity finance options.

The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for Northern smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.