Local SMEs could benefit from new £27m funding with Maven
Maven Capital Partners, a private equity house, has been appointed to manage the £27m North East Development Capital Fund (NEDCF), which will provide equity, debt and mezzanine funding of between £400k and £2m to established businesses.
The NEDCF forms part of the £120m North East Fund, supported by the European Regional Development Fund, which will invest across the seven local authorities of Northumberland, North Tyneside, Newcastle, South Tyneside, Gateshead, Sunderland and Durham.
It is said to have the potential to support 600 businesses and create 3,500 jobs across the region.
Michael Vassallo, Maven’s investment director, said: “As one of the UK’s most active private equity fund managers, and with many years [of] experience investing in and supporting SMEs across the North of England, the team at Maven is delighted to be working with North East Finance to deliver the objectives of the Fund.”
The NEDCF will provide growth capital to support ambitious small and medium-sized enterprises who are looking to develop new products, enter new markets, and/or expand their current operations.
Maven has significant experience of managing similar initiatives on behalf of the Northern Powerhouse and the Midlands Engine, and since 2009 has invested over £340m in over 180 UK SMEs to support their growth.
Maven’s local investment team, led by Michael Vassallo, have also been active in the market through its management of the £20m Finance Durham Fund.
Recent transactions include the £850k investment in the fintech firm Honcho Markets, and its backing of the craft distillery, Durham Gin.