NPIF trumpets £31m investment into SMEs

Keith Morgan

The Northern Powerhouse Investment Fund (NPIF) has invested £31m in 207 Northern-based SMEs during the first 12 months of operation.

The £400m Fund, which is supported by the European Regional Development Fund, the Government and the European Investment Bank, was launched by the British Business Bank as a key part of the government’s ‘Northern Powerhouse’ vision to back innovative, fast growing small businesses.

Over the last 12 months, NPIF has worked with the 10 local enterprise partnerships (LEPs), combined authorities, as well as local accountants, fund managers and banks, to provide a mix of debt and equity capital to SMEs in the North West, Yorkshire & Humber and Tees Valley regions.

Appointed fund managers have completed deals between £25,000 to £2m into businesses across a range of industries, including technology and advanced manufacturing and life sciences.

Investments have been completed across all 10 LEP areas and the Fund has also managed to leverage an additional £32m in private sector finance for local businesses.

Recent NPIF investments in the North West region include:

• A £150,000 loan from NPIF – FW Capital Debt Finance, managed by FW Capital, into Lancashire-based Inleaf,which provides plant displays and living wall installations to offices, hotels, car dealerships and public spaces.
• A £80,000 microfinance loan from NPIF – BFS & MSIF Microfinance, into Liverpool-based Inovus Medical which manufactures medical and training products used by doctors and surgeons across the globe, delivered by MSIF.
• A £600,000 investment from NPIF – Maven Equity Finance, managed by Maven Capital Partners into Manchester-based Hiring Hub, an innovative online marketplace for independent recruitment agencies.
The additional source of funding has enabled these businesses to meet growth ambitions, launch new products, expand into new markets, and invest in new infrastructure.

Andy Burnham, Mayor of Greater Manchester, said: “Access to finance is vital to help small businesses flourish and it’s fantastic to see regional funds such as NPIF making an impact in Greater Manchester and beyond.

“I have been impressed with the calibre of businesses that have come forward to secure funding and it shows that there’s appetite from entrepreneurs across the region to look beyond traditional means of finance to facilitate growth.”

Keith Morgan, chief executive of British Business Bank, said: “It is fantastic to see NPIF making a genuine impact to businesses in the North of England. The number of significant milestones achieved over the last 12 months, demonstrates the success of the regional funding models and the importance of people on the ground ensuring vital funds are efficiently invested in high-growth businesses.”

Jake Berry, Northern Powerhouse Minister, said: “What the Northern Powerhouse Investment Fund has achieved in such a short space of time is truly remarkable. The Northern Powerhouse Investment Fund has given businesses across a wide range of industries the funds they need to innovate and grow – whether that be expanding into emerging markets, investing in research and development or hiring new staff to help their company flourish.”

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