Funding helps hospitality group seal buyout

A Manchester hospitality group is preparing for its next phase of growth after securing six-figure funding to support a management buyout.

Northern Hospitality (MCR) has received investment from NPIF II – FW Capital Debt Finance, managed by FW Capital as part of the Northern Powerhouse Investment Fund II (NPIF II).

Founded in 2018, Northern Hospitality (MCR) operates three well-known venues in Manchester’s Northern Quarter – Quarter House, Hula and The Fitzgerald – all based within the same building on Stevenson Square.

The funding has supported the successful management buyout of the business by John Wilson and will help drive future growth.

Andrew Blackburn, chairman at Northern Hospitality MCR said: “Northern Hospitality (MCR) is a thriving business with our venues appealing to various audiences who are seeking food, live sport and music, and outdoor space in the heart of the Northern Quarter. 

“With John at the helm of the business, I will  continue to play a key role, supporting the operation of our three iconic sites located in Manchester’s dynamic and thriving Northern Quarter.  

“The investment process with Adam Husband and the team at FW Capital has been seamless, and we are incredibly pleased with the partnership and support we’ve received.”

Adam Husband, senior investment executive at FW Capital, added: “The hospitality sector continues to be squeezed with all the current financial pressures, so it’s important that ambitious operators can access funding to support the running of their business. 

“We have been impressed by the management team at Northern Hospitality (MCR) and it’s great to assist the completion of the MBO. 

“By accessing funds from NPIF II we are demonstrating our appetite and ability to back the North West hospitality sector and assist operators like Northern Hospitality (MCR).”

Tom Hall, corporate partner at Pannone Corporate, advised Northern Hospitality shareholders John Brearley and Andrew Blackburn.

He added: “Northern Hospitality is a fantastic homegrown business that has been expertly led by NQ veterans John and Andrew through what has been some tough trading conditions. 

“Despite the challenges facing the leisure and hospitality sector, the business has geared itself up perfectly with three well-positioned brands. 

“This round of funding and subsequent MBO lays solid foundations for the next stage growth and we’re delighted to have played a small part in helping to bring that future ambition to life.” 

The £660 million NPIF II fund, which is operated by the British Business Bank, provides loans from £25,000 to £2 million and equity investment up to £5 million to help a range of small and medium sized businesses, driving innovation and creating opportunities for businesses to grow, scale, and thrive.

Sue Barnard, senior investment manager at the British Business Bank, added: “Northern Hospitality is a strong example of how access to funding from the Northern Powerhouse Investment Fund II is helping ambitious businesses to invest in their future, safeguard jobs and continue contributing to the local economy. 

“Through NPIF II we are helping to breathe life into the hospitality sector, supporting community focused spaces and driving regional economic growth.”

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