£660m fund launches in support of Northern businesses

The British Business Bank has launched its new Northern Powerhouse Investment Fund II (NPIF II), a £660m pot available to organisations across the North of England. 

Since the launch of the first Northern Powerhouse Investment Fund in 2017, it has delivered over £570m of direct and private sector co-investment into 608 businesses in the North West, creating close to 3,500 jobs.  

The Northern Powerhouse Investment Fund II will enable businesses to access the Fund to start up, scale up or continue on their growth journey. NPIF II will drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses.   

Three fund managers have been appointed to manage the fund in the North West. GC Business Finance & River Capital will manage the smaller loans part of the fund (£25,000 to £100,000), FW Capital will be responsible for larger loans (£100,000 to £2 million) and Praetura Ventures will manage equity deals (up to £5 million).  

Louis Taylor, chief executive of the British Business Bank, said: “The success of the first Northern Powerhouse Investment Fund has proven the instrumental change that access to finance can have for small businesses. From creating hundreds of jobs to developing ground-breaking products, we have seen companies that previously lacked funding options accelerate forward in their growth journeys, which has ultimately benefitted the whole of the Northern economy. 

“This is why it was important to continue the Northern Powerhouse Investment Fund into its next phase. With further funding available, and a greater geographical reach in the North West, the Northern Powerhouse Investment Fund II will engage more stakeholders across the regions, bringing the business community closer together to create more opportunities for entrepreneurs everywhere.”