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The fund managers perspective

It’s finance week on Bdaily and we are looking at the landscape of funding and investment, from both sides of the table. Here Barrie Hensby of NEL Fund Managers talks about the fund.

North east businesses have a distinct advantage over competitors elsewhere in the country, and it’s one that any firms looking to expand should be actively considering as a way of getting ahead.

Launched in early 2010 and managed by North East Finance, the Finance For Business North East initiative is injecting £125m of investment capital into the region over a five-year period by the European Investment Bankand the European Regional Development Fund 2007-13.

My company, NEL Fund Managers, looks after the £20m Financefor Business North East Growth Fund, which is providing ambitious regional businesses at a development and growth stage with access toinvestments of up to £400,000 for use in expanding their operations and creating new, sustainable employment opportunities.

In just two and a half years, NEL has made 54 Growth Fund investments with a total value of more than £10m, and with an average value ofaround £185,000.

In addition to this, we have many other potential investments at different stages of the investment application process, and continue to get a lot ofinterest in the Fund from right across the region, showing that there is still much commercial ambition out there, despite the challenging climate.

There are many examples in the region of businesses that are thriving in spite of everything, and the difference between these businesses and others is very often the management’s desire to move forward.

Businesses that are not moving forward are going backwards. To stand still is to allow your competitors to overtake you. The best time to fund your business plans are when your competitors are hesitant, as in that way, you will be forcing them backwards. Energy, drive and determinationis all that is required.

The businesses in which we have invested so far come from a range of markets, from traditional manufacturing and engineering firms through to ‘asset light’ businesses in the technology, creative and mediasectors, but they all have one thing in common – a desire to expand by building on the success they’ve already enjoyed and create sustainable employment opportunities in the north east as a result.

Investments from NEL have been helping north east businesses achieve their goals for well over 20 years, and we’re obviously keen to giveregional firms every encouragement to look for the money they need to expand and create new jobs.

At a time when obtaining funding from traditional sources remains avery tricky task, we’re actively looking to add even more names to our investee portfolio, and to help companies achieve their ambitions whilst playing their part in the continuing recovery of the regional economy.

Take a look at some of the other finance week articles: A day as a bank manager; Bdaily meets the crowdfunders; The biggest barriers to bank lending; Financing a graduate start-up

This was posted in Bdaily's Members' News section by NEL Fund Managers Ltd .