NEL hails ‘record year’ of investment

A North East investment manager is closing the year on a high after backing a diverse mix of growing businesses across technology, retail, clean energy and professional services.

Gateshead-headquartered NEL Fund Managers has strengthened its role as a key driver of regional growth through a series of investments delivered via the Northern Powerhouse Investment Fund II (NPIF II). 

Activity in 2025 has spanned multiple sectors and company stages, supported through the NPIF II – NEL Smaller Loans Fund and NPIF II – NEL Debt Finance Fund.

James Katirai, head of investments at NEL Fund Managers, said: “2025 has been a record year for NEL, with 34 investments completed across the year for a range of growing SMEs. 

“As we are sector agnostic and offer funding from £25,000 to £2 million, we have supported a wide range of businesses from multi-million-pound management buy outs to start up restaurants. 

“We are focussed on supporting entrepreneurs on their growth journeys and are proud to work with businesses from Berwick down to Teesside. 

“The team have done an excellent job over the last 12 months, and we are ready to support as many businesses as possible as we move into 2026.”

Among the latest investments is a six-figure funding package into County Durham-based EV Smart, supporting team expansion and the rollout of public electric vehicle charging infrastructure. 

The business operates more than 450 charge points nationwide and holds a long-term contract with Newcastle City Council, with further ultra-fast charging hubs in development.

Neil Bowater, chief executive of EV Smart, said: “Working with NEL has been straightforward and collaborative from start to finish. 

“They took the time to understand both our business and the wider opportunity in EV charging and have structured an investment that allows us to keep growing at pace while retaining control of our strategy. 

“Their funding will help us bring more reliable EV charge points to drivers across the North East and beyond and create new skilled jobs in the region.”

NEL has also completed a seven-figure investment into Advantex, an award-winning North East IT, security and communications provider. 

The funding supported a management buyout, enabling the planned exit of one founding shareholder and positioning the business for its next phase of growth under existing leadership.

David O’Connell, managing director of Advantex, added: “NEL were very efficient and provided a great customer experience, quickly understanding our needs and shaping their offering to fit. 

“Securing the required funding in a timely manner has given Advantex the ability to focus fully on our growth strategy and capitalise on the opportunities ahead.”

At the smaller end of the funding spectrum, Sunderland-based independent trainers’ retailer The Sole Guyy secured five-figure backing to boost marketing, expand stock and strengthen its online presence, creating additional capacity as the business scales. 

Elliott Usher, founder of The Sole Guyy, said: “Partnering with NEL has been an extremely positive experience. 

“The team took the time to understand both my business and my ambitions for the future. 

“This investment provides the platform to increase sales, reach a wider customer base, and take meaningful steps toward expanding the business as demand grows.”

A further investment into Northumberland-based MI-Say will support development of its employee listening platform, enhancing reporting capabilities while expanding marketing and business development activity.

Maureen Brown, founder of MI-Say, added: “My experience with NEL was great. 

“Exploring investment options is confusing and complicated when you are doing it for the first time and NEL provided clarity and support to guide us through the options and process successfully.”

Meanwhile, Whitby-based McLean Cleans has also received investment to support relocation to larger premises, increasing machinery capacity and enabling the business to take on larger contracts while creating new jobs.

Founder Stacey McLean added: “This investment will help enable us to expand our services to a larger area and larger businesses in the region, helping to provide more jobs. 

“The biggest feedback from potential customers was that our old premises was too small. 

“This funding has allowed us to ensure the new premises can manage the workload more efficiently.”

Together, the investments highlight the breadth of businesses supported through NPIF II, which provides loans from £25,000 to £2 million and equity investment up to £5 million to help small and medium-sized enterprises grow. 

Backed by the British Business Bank, the £660 million fund continues to play a central role in supporting ambition, job creation and long-term economic growth across the North East.

Sarah Newbould, senior investment manager at British Business Bank, added: “These investments highlight the breadth of ambitious businesses that are being supported through NPIF II across the North East and beyond. 

“It has been an incredibly strong year for the fund, and our fund managers play a key role in this. 

“By providing access to finance at key points in their growth, they are helping businesses to scale, create jobs and strengthen local economies. 

“I look forward to seeing how these businesses will continue to scale.” 

Find out more about NEL Fund Managers, its evolution over the past eighteen months and its future ambitions in our recent interview with chief executive Paul Scott, here. 

You can also read our interview with James Katirai and find out more about NEL's commitment to supporting SME growth throughout the North East in our sister publication, N, here.

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