The Northern Powerhouse Investment Fund II

The Northern Powerhouse Investment Fund II

The British Business Bank launched the new Northern Powerhouse Investment Fund II in March 2024, a £660m fund set to cover the entire North of England. 

The Northern Powerhouse Investment Fund II (NPIF II), aims to build on the success of the initial fund, with the purpose of driving sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North. 

The Fund will increase the supply and diversity of early-stage finance for Northern smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.

Providing loans from £25k to £2m and equity investment up to £5m, the Fund will continue investing into companies operating within the North West, Yorkshire and the Humber and Tees Valley. It is now expanded to include the whole of the North East enabling businesses across the whole of the North to access the Fund to start up, scale up or continue on their growth journey.

Since the launch of the first Northern Powerhouse Investment Fund in 2017, over £1bn of direct and private sector co-investment has been facilitated to businesses.

Nine fund managers have been appointed to manage the Northern Powerhouse Investment Fund II.

In the North West:
GC Business Finance & River Capital will provide smaller loans (£25,000 to £100,000)

FW Capital will provide larger loans (£100,000 to £2 million)

Praetura Ventures will provide equity finance (up to £5 million).

In Yorkshire and the Humber:

Business Enterprise Fund (BEF) will provide smaller loans (£25,000 and £100,000).

Mercia will provide debt finance (£100,000 to £2 million)
Mercia will provide equity finance (up to £5 million) 

In the North East:

NEL Fund Managers (NEL) will provide smaller loans (£25,000 to £100,000)

NEL Fund Managers (NEL)) will provide debt finance (£100,000 to £2 million) 

Maven Capital Partners will provide equity deals up to £5 million.

For more information about the Northern Powerhouse Investment Fund II, please visit www.northernpowerhouseinvestmentfund.co.uk