Member Article

North East businesses set to benefit as regional growth fund given £4m extension

Businesses in the region are being encouraged to make investment bids following a new £4m extension to the Finance For Business North East Growth Fund.

Launched in 2010, the fund is run by fund management firm NEL Fund Managers and is aimed at North East businesses who are at a development and growth stage.

NEL have made 126 investments since launching the fund, totalling over £25m, and are now looking to make a further 15 of between £50,000 and £400k over the next year

Yvonne Gale, chief executive at NEL, says: “Having a consistent flow of investment capital available as regional businesses evolve through different stages of development is absolutely essential, and securing this extension to the Growth Fund is great news both for ourselves and the wider North East economy.

“The investments we make are designed to both create and sustain regional employment, as well as to encourage wealth creation and investment in our supply chain, and we have many examples in our investee portfolio of North East firms that have used Growth Fund capital to do just that by securing national and international commercial success.

“Demand for the type of mezzanine funding we provide remains as strong as ever, and while we already have a number of investment proposals at different stages of the application assessment process, we want to hear from as many North East businesses as possible with strong management teams and robust development plans, especially if they’ve not previously considered going down this road to putting those plans into action.”

Andrew Mitchell, chief executive at North East Finance, adds: “We are delighted to be able to secure more funds for NEL and our other fund managers.

“They can now build on their success in supporting some of the most exciting businesses in the region.”

Established by holding fund manager North East Finance (NEF) in 2010, the £159.5m Finance for Business North East (FBNE) programme is a suite of seven venture capital and loan funds providing investment for startups and growing businesses in the North East.