NPIF supports £184m of investment across the North in its second year
• Over 440 investments completed across 10 LEP areas
• Combined value of investments totalling £184m, including £84m leveraged from the private sector
As it reaches the second anniversary of its launch, the Northern Powerhouse Investment Fund (NPIF) is celebrating having directly invested £100m in 385 Northern-based SMEs, in deals that have attracted an additional £84m of investment from the private sector.
The £400m investment fund was launched in 2017 by the British Business Bank using funding from the European Regional Development Fund, HM Government and the European Investment Bank. NPIF forms a key part of the BBB’s activities to help reduce regional funding imbalances and create economic prosperity in the North of England.
Over the last two years, NPIF has worked with 10 Local Enterprise Partnerships (LEPs), Combined Authorities, local accountants, fund managers and banks to provide both debt and equity finance to SMEs across the North West, Yorkshire & Humber and Tees Valley regions.
The funding has enabled businesses to scale up through product launches, expansion into new markets and investment in staff and infrastructure. NPIF offers various funding options, including microfinance solutions between £25,000 and £100,000, debt finance between £100,000 and £750,000, or equity finance up to £2m.
Recent NPIF investments include:
- NPIF – Maven Equity Finance provided £150,000 to cloud-based project management system, Collabor8Online, which is based in Manchester. The investment will be used to enable new product development and support the expansion of the company’s senior management and sales teams.
- Leeds-based Force24, which has developed one of the UK’s leading marketing automation platforms, has secured a £250,000 loan from NPIF – Mercia Debt Finance to further develop its product and introduce new features.
- NPIF – FW Capital Debt Finance provided £250,000 to My Fish Company, a Fleetwood-based independent wholesale supplier of fish and seafood to businesses across the North West. The funding will be used to create 10 jobs over the next three years, as well as aid investment in new software and new premises.
- NPIF – Mercia Equity Finance invested £200,000 as a follow-on to its initial investment of £100,000 in Darlington-based Laytrix, a business which has developed innovative systems for laying and removing subsea pipelines. The initial funding has been used to develop a client base, both locally and further afield, including the Middle East and Far East.
Jake Berry MP, Northern Powerhouse Minister, said: “The Northern Powerhouse Investment Fund plays a vital role in supporting businesses to grow, innovate, create new jobs and boost skills across the Northern Powerhouse. The investments so far demonstrate what can be achieved when the Government works hand-in-hand with both the private and public sectors to support businesses and communities to thrive.”
Kelly Tolhurst, Small Business Minister, said: “Having been a small business owner myself I recognise the importance of giving businesses the right tools to succeed, which is why I’m delighted to welcome the Northern Powerhouse Investment Fund’s milestone and its work with SMEs in the North.”
“Small businesses, wherever they are in the UK, are the backbone of our economy and through our modern Industrial Strategy we are committed to helping the UK remain the best place in the world to start and grow a business.”
Roger Marsh OBE, Chairman of the NPIF Strategic Oversight Board and Chair of Leeds City Region Enterprise Partnership (LEP), said: “As Chairman of NPIF’s Strategic Oversight Board, I am proud to see the impact these funds are having on innovation and job creation within the North of England. Having previously been stifled by a lack of funding options, we are now seeing Northern businesses make the most of this opportunity and unlock their true potential. It is encouraging to see the funds being deployed so quickly, and we hope to continue this momentum in NPIF’s third year.”
Ken Cooper, Managing Director of British Business Bank, said:
“We are just two years into this fund’s life but already we can see NPIF having a measurable impact on business growth in the North of England. Investments from our funds are boosting job creation and unlocking growth potential across a wide spectrum of business opportunities.
“The number of SMEs supported and the amount of investment made has exceeded our original expectations and shows what can be achieved when the British Business Bank, Government, Local Enterprise Partnerships and fund managers work together. Whilst there is more to do to balance the regional disparities across the country, I am looking forward to our third year, during which NPIF will continue to support established and emerging businesses in the North.”
The Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.
For more information about Northern Powerhouse Investment Fund, please visit www.npif.co.uk.
Callum Brookes, MC2
0161 236 1352
About the Northern Powerhouse Investment Fund
- The Northern Powerhouse Investment Fund will invest in Microfinance, Business Loans and Equity Finance sub-funds which will offer financing ranging from £25,000 to £2m, specifically to help small and medium sized businesses secure the funding they need for growth and development.
- The Northern Powerhouse Investment Fund is operated by British Business Financial Services Limited, wholly owned by British Business Bank, the UK’s national economic development bank. Established in November 2014, its mission is to make finance markets for smaller businesses work more effectively, enabling those businesses to prosper, grow and build UK economic activity.
- The Northern Powerhouse Investment Fund is supported by the European Regional Development Fund, the European Investment Bank, the Department for Business, Energy and Industrial Strategy and British Business Finance Limited, a British Business Bank group company.
- NPIF covers the following LEP areas: Tees Valley Combined Authority, Greater Manchester, Cheshire and Warrington, Cumbria, Liverpool City Region, Lancashire, Humber, Leeds City Region, Sheffield City Region, York, North Yorkshire and East Riding.
- The project is receiving up to £140,359,192 of funding from the England European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020. The Department for Communities and Local Government is the Managing Authority for European Regional Development Fund. Established by the European Union, the European Regional Development Fund helps local areas stimulate their economic development by investing in projects which will support innovation, businesses, create jobs and local community regenerations. For more information visit https://www.gov.uk/european-growth-funding.
- The funds in which Northern Powerhouse Investment Fund invests are open to businesses with material operations, or planning to open material operations, in, Yorkshire and the Humber, the North West and Tees Valley
- The Government has guaranteed all funding allocated through EU programmes until the end of 2020. https://www.gov.uk/government/news/funding-from-eu-programmes-guaranteed-until-the-end-of-2020
- The British Business Bank has published the Business Finance Guide (in partnership with the ICAEW, and a further 21 business and finance organisations). The guide, which impartially sets out the range finance options available to businesses and provides links to support available at a regional level, is available at thebusinessfinanceguide.co.uk/bbb
British Business Bank plc is a limited company registered in England and Wales, registration number 08616013, registered office at Steel City House, West Street, Sheffield, S1 2GQ. As the holding company of the group operating under the trading name of British Business Bank, it is a development bank wholly owned by HM Government which is not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). The British Business Bank operates under its own brand name through a number of subsidiaries, one of which is authorised and regulated by the FCA.
British Business Financial Services Limited is a wholly owned subsidiary of British Business Bank plc, registered in England and Wales, registration number 09174621, registered office at Steel City House, West Street, Sheffield, S1 2GQ. It is not authorised or regulated by the PRA or FCA.
More information, including a legal structure chart for British Business Bank plc and its subsidiaries, can be found on the British Business Bank website