North West restaurant operator to expand nationally with multi-million pound investment

Private equity firm NorthEdge Capital has provided a multi-million pound boost for the company behind North West dining brands Victor’s and Neighbourhood.

The investment will allow Manchester-headquartered East Coast Concepts to bring its growth plans to fruition with the rollout of its two concepts to city centres and suburbs across the country.

Founded by entrepreneurial brothers James and Guy Hitchen, East Coast currently operates Spinningfields-based Neighbourhood, which recently underwent a £1m refurb, and Victor’s in Hale, Cheshire.

East Coast is expecting to achieve a record £8m turnover this year. Work is already underway on its second Neighbourhood bar and restaurant in Liverpool, which will bring its workforce to 200.

NorthEdge investment director Phil Frame, who will join the East Coast board in the role of non-executive director, led the deal alongside investment manager James Marshall.

Phil said: “James [Hitchen] has launched two exciting, differentiated concepts in the North of England which have fantastic roll out potential.

“The casual dining scene continues to demonstrate strong dynamics for innovative concepts and we believe both Neighbourhood and Victor’s are well placed for further growth.”

He added: “James is a first class entrepreneur and we are delighted to be backing him and the rest of the team.”

East Coast co-founder James said he and his brother are “delighted” to have partnered up with NorthEdge as the firm looks towards its next stage of development.

He continued: “We are constantly looking for new ways to improve our offering and the additional funding from NorthEdge will give us the firepower to become one of the best premium casual dining brands in the UK.”

Investment banking business Zeus Capital, led by Richard Darlington, provided NorthEdge with corporate finance advice during the transaction, while law firm Gateleys’ Paul Jefferson offered legal support.

Zeus Capital’s director of private equity advisory, Richard Darlington, commented: “We are delighted to have advised the NorthEdge team on its investment in Neighbourhood and Victor’s.

“In recent years, private equity investment from both the UK and overseas has had an enormous impact on the strength of the UK’s casual dining sector, paving the way for new and innovative concepts in the industry.”

Richard added: “Neighbourhood and Victor’s have proven to be in high demand in the North West, and I am certain that with the support of his new backers, James will be able to realise his plans to roll out across the UK.”