The British Business Bank has introduced the Northern Powerhouse Investment Fund II, offering a £660 million fund aimed at supporting small businesses in the North of England.
Loans ranging from £25,000 to £2 million, debt finance from £100,000 to £2 million, and equity investments up to £5 million will be accessible to companies in the North West, Yorkshire and the Humber, Tees Valley, and the North East. This new fund builds upon the original fund launched in 2017, which facilitated over £1 billion in direct and private sector co-investment, according to the British Business Bank.
The initiative aims to drive sustainable economic growth by fostering innovation and creating local opportunities for emerging and expanding businesses in the North of England.
Nine fund managers have been appointed to oversee the investment fund:
– In the North West, GC Business Finance and River Capital will manage smaller loans (£25,000 to £100,000), FW Capital will handle larger loans (£100,000 to £2 million), and Praetura Ventures will focus on equity deals (up to £5 million).
– In Yorkshire and the Humber, Mercia will provide debt finance (£100,000 to £2 million) and equity finance (up to £5 million) for smaller businesses, while the Business Enterprise Fund will manage smaller loans (£25,000 to £100,000).
– In the North East, NEL Fund Managers will offer both smaller loans (£25,000 to £100,000) and debt finance (£100,000 to £2 million), while Maven Capital Partners will administer equity deals (up to £5 million).
Louis Taylor, CEO of the British Business Bank, remarked, “The success of the first Northern Powerhouse Investment Fund has demonstrated the significant impact that access to finance can have on small businesses. We have witnessed companies that previously lacked funding options accelerate their growth, benefiting the entire Northern economy.”
Taylor emphasized the importance of continuing the Northern Powerhouse Investment Fund into its next phase, noting that with additional funding and an expanded geographic reach in the North East, the initiative will engage more stakeholders and foster collaboration within the business community.
Kevin Hollinrake MP, Minister of State for Enterprise, Markets, and Small Business, stated, “This new fund will unlock millions in equity and loans for SMEs across the North, enabling them to realize their full potential. It builds on the British Business Bank’s essential work to ensure that any small business owner in the UK can scale effectively.”
He added, “SMEs are vital to our economy’s growth, and our government is dedicated to improving access to finance, cutting red tape, and eliminating barriers to support their progress.”