NorthEdge announces new £300m Northern investment fund

NorthEdge Capital, the Manchester- and Leeds-based private equity firm, has closed its second fund at the hard cap of £300m.

Having raised NorthEdge Capital Fund II in four months, the move brings the company’s total funds under management to more than £500m raised in the last four years.

NorthEdge’s first fund closed in March 2013 and raised £225m, £180m of which has now been invested in 13 Northern businesses employing over 3,000 people.

According to NorthEdge, the majority of the businesses were bought from corporates and private investors, mostly through development capital deals and management-led buy-outs.

Investments over the last 12 months include gym chain Total Fitness, Denton-based kitchen and bedroom furniture company TKC and Rossendale-based home decoration supplier Arthouse.

The average equity investment on each deal has been around £14m.

Grant Berry, the firm’s managing partner, said: “We are delighted to have reached the hard cap of £300m in such a short timeframe and that our existing investors continue to show great confidence in supporting the NorthEdge team and offering.

“We are also delighted to welcome four new high quality institutional investors.

“The North of England is now firmly on the map and continues to offer some great investment opportunities from a range of high growth businesses who are looking to broaden their national and global reach.”

He continued: “We remain passionate about targeting dedicated management teams who want capital to maximise the potential in their businesses.

“In return we bring a positive, creative and straight-talking approach. Crucially, NorthEdge also offers local decision-making. The North is our home and where our network is, and this is where the investment decisions are taken by the partners.”