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NVM Private Equity leads £3.4m investment in Cramlington tech firm Avid

Newcastle-based NVM Private Equity (NVM) is leading a development capital funding round to invest in Cramlington-based technology firm Avid Technology Group (AVID).

NVM has invested £2m as part of a £3.4m funding round in AVID, which specialises in the design and manufacture of electrified vehicle powertrain systems used to improve vehicle efficiency and reduce emissions.

Vehicle manufacturers use such technology to improve the efficiency of their diesel engine products and enable their high performance electric, hybrid and fuel cell vehicle powertrains.

The funding will increase engineering and manufacturing capability and capacity at its Cramlington facility to meet the needs of its customers.

NVM are the leading investors but also participating in the funding round are existing investors North East Technology Fund (“NETF”), managed by IP Group plc, and new investors Downing LLP.

Mauro Biagioni, who led the deal with support from Charles Winward of NVM Private Equity said: “AVID has a strong platform for growth. We have been impressed by the customer feedback and believe we have identified a business with an excellent leadership team.

“This investment demonstrates NVM’s commitment to supporting the growth of ambitious UK based companies, using our VCT funding and strategic expertise to create scale and sustainable value.”

Andy Hales, previously a corporate finance partner in KPMG’s diversified industrials team, has invested in AVID and will join the board as Chairman.

He said: “I am pleased to be joining AVID. I’ve worked across the global engineering sector, and see significant opportunity for UK specialist engineering companies, especially those with AVID’s strong reputation for innovation, quality and delivery.”

AVID, founded by entrepreneur Ryan Maughan, has design and engineering capabilities that help its customers meet the need for innovation, particularly in relation to electrification of engine components, and can now provide a full service from concept, design and testing, through to manufacturing and full integration into the vehicle.

Ryan Maughan, Managing Director of AVID, said: “This investment builds on the success of our fantastic team with our customer base of blue chip vehicle manufacturers and operators across the world.

“It will allow AVID to develop its engineering and manufacturing capabilities, to continue our mission of improving the efficiency and environmental impact of the most polluting vehicles.

“I am very grateful for the continued support of IP Group’s NETF and the new investments from NVM and Downing who have recognised the capability of the AVID business. I am looking forward to working with the team to continue to deliver the vision for the business.”