Finance Yorkshire secures £5m investment fund extension

Finance Yorkshire’s investment fund has been given a multi-million pound boost by two of the region’s Local Enterprise Partnerships (LEPs).

Fresh capital totalling £5m has been allocated to the fund by the Leeds City Region LEP and Sheffield City Region LEP.

The extension follows the full investment of Finance Yorkshire’s £113m fund in June.

Now, the organisation is seeking new investment opportunities in businesses that need gap funding to drive their growth plans and create jobs.

Finance Yorkshire chairman James Newman said: “The full investment of our original fund was a fantastic achievement by everyone involved at Finance Yorkshire.

“The investments have enabled hundreds of SMEs across a wide range of industry sectors to expand their team, invest in equipment and open up new markets.”

He added: “I’m delighted that we have been able to secure additional funding to help even more SMEs and further boost the economy of our region.”

Alex McWhirter, the fund’s chief exec, commented: “We know that many companies are in good shape but nonetheless find it difficult to access funding. Our investments play an important role in filling that funding gap.

“The full investment of our original fund was an exceptional achievement but we are mindful of the need to provide continued support for regional SMEs.”

He continued: “I’m grateful to our partners in the Leeds and Sheffield City Region LEPs for working with us to secure this extension fund, which will be invested up until March 2017.

“We look forward to talking to regional businesses about their funding requirements and will continue to work closely with business advisors to highlight the investment opportunities available.”

Set up in 2010, Finance Yorkshire has since helped over 470 companies increase their collective turnover by £452m and secure a further £286m in private sector funding.

In total, investment from Finance Yorkshire has helped the region’s SMEs create and safeguard more than 13,400 jobs.

Leeds City Region LEP chairman Roger Marsh said: “Our significant contribution to the Finance Yorkshire extension fund is a clear demonstration of our commitment to work with partners in supporting SMEs to access finance to grow and prosper.

“The investments made from the fund will be invaluable, enabling regional businesses to enjoy further growth, create jobs and contribute to the economic success of the Leeds City Region.”

Commenting on the deal, Sir Nigel Knowles, chairman of the Sheffield City Region LEP, said creating “pragmatic and straightforward investment opportunities” for SMEs is “vital” for the region, adding: “Finance Yorkshire will help ambitious businesses in Sheffield City Region to grow and flourish as we all work together to build a truly competitive centre of business excellence.”

Supported financially by the EU with investment from the European Regional Development Fund, as well as the Regional Growth Fund, Finance Yorkshire offers seedcorn, loan and equity-linked investments.