The Northern Powerhouse Investment Fund (NPIF) has invested over £300m directly in 952 companies in the North of England, alongside an additional £400m co-investment from the private sector, bringing its total delivery to over £700 million.
Launched in 2017 to address market gaps and regional imbalances in access to finance, this milestone is the result of 1,280 investments in companies of a wide variety of sizes, sectors and locations, widely spread across the region. NPIF.
In total, the Fund provided £122 million in equity financing, £162 million in debt financing and £19 million in microfinance.
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The most active sector for NPIF investment to date has been advanced manufacturing, with support provided to companies working in a dynamic range of sectors, from renewable energy and e-commerce, to technology, media and telecommunications and health and life sciences.
Recent successes in the Fund’s portfolio include Billingham-based Everflow Group, which secured a £750,000 investment in April 2021 from NPIF – FW Capital Finance, part of NPIF and managed by FW Capital.
Since the deal was struck, the funding has helped the company grow its workforce to over 100, develop its software system and meet its target of £240m in annual revenue. In March 2021, Everflow ranked third in the Financial Times annual list of Europe’s 1,000 fastest growing companies.
Other investments in the Tees Valley include a £750,000 NPIF – FW Capital Debt Finance investment in the Materials Processing Institute (MPI), the Middlesbrough-based not-for-profit research centre; a £250,000 investment in Bubo.AI, a Middlesbrough-based company with unique software pricing tool by NPIF – Mercia Equity Finance; And a £250,000 boost to SockMonkey Studios from NPIF – Mercia Equity Finance, which has seen the game developer more than double its workforce.
The news comes after the Chancellor announced the next generation of NPIF in the latest spending review. Public funding of £660 million has been allocated to the British Business Bank to launch the next phase of the Northern Powerhouse Investment Fund.
Catherine Lewis La Torre, CEO of British Business Bank, said: “The Northern Powerhouse Investment Fund is an important source of funding for hundreds of businesses in the North of England.
“Thanks to better access to financing, these beneficiary companies have been able to realize their growth plans, create jobs and realize their full potential.
“We have built an incredible network of partners and stakeholders across the region that will underpin the launch of our Next Generation Investment Fund, which we see as a critical step in delivering a stronger North.
Sir Roger Marsh OBE DL, Chairman of the Leeds City Region Enterprise Partnership, the NP11 Group of Northern LEPs and the NPIF Strategic Oversight Board, said: “There have been countless success stories across the NPIF portfolio to date. , with organizations of all sizes and from all sectors. support from fund managers, local business partnerships and other regional actors.
“The first NPIF was a resounding success and an extremely important tool for many of the exciting businesses we have here. With the recent announcement of the successor to the NPIF, which will also include the North East LEP area, this will inevitably help us create an environment in which businesses will continue to thrive.
The Northern Powerhouse Investment Fund project is financially supported by the European Union through funding from the European Regional Development Fund (ERDF) under the European Structural and Investment Funds Growth Program 2014-2020 and the European Bank of investment.
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