Powering Northern Ambition: One Year of NPIF II

One year on from the launch of the Northern Powerhouse Investment Fund II (NPIF II), we are proud to celebrate a strong and impactful first year, marked by over 200 investments into ambitious small businesses across the North of England.

The mission of NPIF II is clear: a £660m investment fund designed to fuel innovation, drive economic development, and help smaller businesses thrive by providing access to the finance they need. Whether through loans or equity finance, the Fund opens the doors to investment for businesses that have traditionally faced barriers to securing investment.

Since the first deals were completed in July 2024, the Fund has gained significant momentum, supporting an array of businesses including those that are: driving the green economy, backing innovation, and reaching underserved regions.

As we mark this milestone, we’re also proud that the Fund has surpassed £80 million in total investment - a sign of the long-term impact to come and economic transformation it is set to deliver as it enters its second year in operation.

Deals reaching far and wide

The £660 million Fund builds on the strong foundations of the first Northern Powerhouse Investment Fund, widening its reach to cover the entire North of England for the first time. This expansion brings new opportunities to areas such as Newcastle-upon-Tyne and Northumberland, which are now benefitting from NPIF II’s support as part of the Fund’s broader regional focus.

Looking ahead, NPIF II will continue to play a vital role in levelling up economic opportunity across the North, unlocking potential, creating jobs, and helping more entrepreneurs to build successful enterprises.

Supporting businesses across the North

Providing finance in underrepresented areas is a crucial aim of the Fund, from towns and cities, countryside to coasts. Stockton-on-Tees based Southern Asset Management secured a six-figure investment from NPIF II – NEL Debt Finance. The family run company, at the forefront of innovation and development within the lighting testing and inspection sector, has been able to expand into new markets and win new contracts thanks to NPIF II funding.

Elsewhere in the North West, the Fund is creating more accessible finance options for female-founded businesses like Patisserie Lane Café. NPIF II funding is breaking down barriers to entry for underrepresented groups such as female business leaders, unlocking a more diverse business ecosystem in the North. Patisserie Lane Café, based in Widnes received a £60,000 investment from NPIF II – River Capital & GC Business Finance Smaller Loans to enable the opening of its new coffee shop.

And in Yorkshire, NPIF II is championing innovative and forward-thinking businesses. Eventum Orthopaedics, a med-tech company whose devices aim to revolutionise knee replacement surgery, raised a total of £3.8m from NPIF II - Mercia Equity Finance, Mercia EIS funds and private investors. It is one of many examples of cutting-edge, technology enabled businesses that NPIF II is supporting, empowering Northern businesses to be at the forefront of innovation and revolution.

Creating a stronger future

As NPIF II enters its second year, its momentum shows no sign of slowing. The stories emerging from across the North, from pioneering med-tech firms and family-run manufacturers to dynamic female-led start-ups, are a testament to the transformative power of targeted investment. But this is just the beginning. With investment still to deploy, NPIF II is poised to deepen its reach, nurture even more talent, and accelerate the North’s journey toward a more inclusive, sustainable, and resilient economy.

Whether you’re looking to scale, innovate, or take your first steps as a founder, NPIF II is ready to help you realise your ambitions and shape the future of the Northern business landscape.

If you’re an ambitious business owner looking for funding for growth, there are several ways you can find out how the Fund can support you. Get in touch here.