Northern Powerhouse Investment Fund Launches
Wednesday 15th March 2017
Brabners is pleased to welcome the formal launch of the Northern Powerhouse Investment Fund, a £400 million government backed fund, established to provide finance to SMEs located in the North of England. The new fund offers three different funding options for SMEs, micro finance (providing small business loans of £25,000 to £100,000), debt finance (providing larger business loans of £100,000 to £750,000) and equity finance (providing £50,000 to £2 million of equity funding).
Commenting on the launch of the new fund, Daniel Hayhurst, Corporate Solicitor and member of Brabners Private Equity and Venture Capital team, said “While funding markets have eased since the 2008 credit crunch, ambitious SMEs in the region have still struggled to access the finance to realise their growth goals, particularly following the closure of the previous North West fund. The new Northern Powerhouse Investment Fund will provide welcome opportunities for SMEs and we are already seeing evidence of the new fund meeting pent up demand in the market, with some fund managers reporting over 100 enquiries for funding in the new fund’s first week”.
Andrew O’Mahony, Partner and Head of Private Equity and Venture Capital in Liverpool, added “It is welcome to see that a key legacy ambition of the new fund is to address the lack of equity funding in the Northern region. While Manchester has emerged as a substantial private equity market, the North still lags significantly behind London and the South East for venture capital and private equity investments, accounting for only 7% (by value) of such investments despite accounting for 20% of the UK’s business community. The equity element of the new fund should assist SMEs and entrepreneurs in finding the funding for ambitious growth plans”.