North East businesses share in over £180m of investment since the launch of the Northern Powerhouse Investment Fund II
The Northern Powerhouse Investment Fund II (NPIF II) has directly invested £115m into over 300 small businesses across the North of England, including across the North East. This is alongside an additional £68m of private sector co-investment, taking its total delivery to more than £180m. Since its launch, NPIF II has now completed over 315 deals to date.
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 East.
The Fund has supported a diverse range of business sectors, including advanced manufacturing, digital and technology businesses and the creative industries that align with the Government’s eight priority key sectors.
Operated by the British Business Bank, NPIF II is a £660m 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 £2m and equity investment up to £5m to start up, scale up, and stay ahead.
Since its launch, NPIF II has completed deals with some of the North East’s most exciting founders, helping businesses access the finance they need to unlock growth and new opportunities.
One such business is Magnitude Biosciences, a specialist contract research organisation offering in vivo discovery treatments for age-related conditions and other diseases. Based in County Durham and led by Dr Fozia Saleem, it received £700,000 in a funding round led by NPIF II – Maven Equity Finance to scale up its high-throughput screening platform, which will be able to screen thousands of compounds a week. The business is at the forefront of drug discovery and, based in NETPark, is a key player in the North East’s growing hub for digital and life science innovation.
In Stockton-On-Tees, Southern Asset Management was the first business in the Tees Valley to secure NPIF II investment, a six-figure investment from NPIF II – NEL Debt Finance. The leading provider of specialist structural testing and asset management of street lamps, masts, signs and structures in Teesside used the funding to expand into new markets, notably wind turbine testing and rail sectors. The funding has also been supporting its ambition to increase its workforce from 13 to 17 people. This wasn’t the first time the business had received support from the British Business Bank, having secured investment from the first NPIF in March 2023, helping to increase headcount from four to 13 while tripling turnover.
Up in Northumberland, LBM group, a growing electrical contracting firm specialising in solar photovoltaic (PV) technology, battery storage installation and electric vehicle charging point installation, secured a five-figure investment from NPIF II – NEL Smaller Loans. The Blyth-based business began as a sole trader in 2011, before expanding as it secured a number of local contracts. Having recently secured a contract for over 116 new build homes over the next three years, LBM Group is using the investment to hire an additional full-time engineer, equipping them with tools and a new vehicle to continue fulfilling the influx of new contracts.
Sarah Newbould, senior investment manager at the British Business Bank, said: “The North East is home to some truly exceptional businesses, so it’s important that they have access to the funding and support they need to scale and grow. With NPIF II building on the success of the first NPIF, and now covering the entirety of the North East, we’re ensuring that businesses of all shapes and sizes have access to a funding ecosystem that understands their unique characteristics. A year and a half on from its launch, the impact of NPIF II is already clear across both our region, and the wider North of England. It’s this targeted regional approach that is setting businesses up for success and reaffirms our commitment to unlocking growth across every corner of the country.”
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.”
Maven Capital Partners and NEL Fund Managers are responsible for delivering NPIF II funds across the North East, 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.