Northern Powerhouse Investment Fund II Drives Sustainable Growth in North East Businesses

Strategic Insights -

The Northern Powerhouse Investment Fund II has been instrumental in supporting innovative businesses in the North East of England, providing access to finance and driving sustainable economic growth. The £660m fund, operated by the British Business Bank, has completed deals with over 300 businesses, including Magnitude Biosciences, Southern Asset Management, and LBM Group. These investments have enabled businesses to scale up, expand into new markets, and increase their workforce, showcasing the fund's positive impact on the region.

Key Takeaways:

  • The Northern Powerhouse Investment Fund II has completed deals with over 300 businesses in the North East of England, providing access to £180m in finance.
  • The fund has supported businesses across various sectors, including advanced manufacturing, digital and technology, and creative industries.
  • Magnitude Biosciences received £700,000 in funding to scale up its high-throughput screening platform, which will be able to screen thousands of compounds a week.
  • Southern Asset Management secured a six-figure investment to expand into new markets, including wind turbine testing and rail sectors.
  • LBM Group, an electrical contracting firm, received a five-figure investment to hire an additional full-time engineer and equip them with necessary tools.
  • The fund has helped increase headcount and turnover for several businesses, including Southern Asset Management, which tripled its turnover after receiving support from the British Business Bank.
  • The Northern Powerhouse Investment Fund II is increasing the supply and diversity of early-stage finance for Northern smaller businesses, providing funds to firms that might otherwise not receive investment.

Statistics:

  • £660m: The total amount of the Northern Powerhouse Investment Fund II.
  • £180m: The amount of finance directly invested by the fund so far.
  • 300+: The number of businesses that have completed deals with the fund.
  • £700,000: The amount Magnitude Biosciences received in funding.
  • Six-figure: The investment received by Southern Asset Management.
  • Five-figure: The investment received by LBM Group.
  • 13-17: The increase in workforce for Southern Asset Management.
  • 4-13: The increase in headcount for Southern Asset Management after its first investment.
  • 116: The number of new build homes that LBM Group is contracted to install solar photovoltaic (PV) technology over the next three years.

Sources:

  • "Byline: Alex Swift, Operated by the British Business Bank, Northern Powerhouse Investment Fund II is a £660m fund that provides loans and equity finance options for Northern smaller businesses."
  • "Magnifiles Ledger, 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."
  • "Maven Capital Partners, 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.'"