Northern Powerhouse Investment Fund injects more than £237m into the North
The Northern Powerhouse Investment Fund (NPIF) is celebrating having directly invested £237m across 1,068 deals, as it reaches the fourth anniversary of its launch.
To date, this backing has attracted an additional £288m of investment from the private sector delivering over £500m of funding to Northern small businesses.
NPIF was launched in 2017 by the British Business Bank using funding from the European Regional Development Fund (ERDF), the Government and the European Investment Bank.
It forms a key part of the Bank’s activities to back the Government’s Levelling Up agenda by helping to reduce regional funding imbalances and create economic prosperity in the North of England.
Initially a £400m fund, the Chancellor committed an additional £100m to NPIF in 2020, making £500m available for investment.
Over the last four years, NPIF has worked with the North’s 10 Local Enterprise Partnerships (LEPs), Growth Hubs, Combined Authorities and fund managers to support small and medium businesses across the North West, Yorkshire & Humber and Tees Valley regions.
Funding options include microfinance between £25,000 and £100,000, debt finance between £100,000 and £750,000, and equity finance up to £2m.
Over the last year fund managers have provided Covid-related support, including NPIF loans backed by the government’s CBILS scheme, and access to the Government’s Future Fund.
NPIF has, for example, invested in Additive Manufacturing Technologies (AMT), a Sheffield-based 3D print equipment company, which raised £2.5m in its latest funding round.
This included funding from NPIF – Mercia Equity Finance, the Government’s Future Fund and other investors.
Roger Marsh, chairman of the Leeds City Region Enterprise Partnership (LEP) and chairman of the NPIF strategic oversight board, said: “I have seen first-hand the difference the Northern Powerhouse Investment Fund has made to the region’s economic development over the past four years.
“Alongside funds from the private sector, to date it has invested over half a billion pounds, backing innovative businesses to help create new jobs and level up the North.
“With support from institutions like the Northern Powerhouse Investment Fund, the North has the potential to take a leading role in the recovery and as the UK builds new trading relationships with the rest of the world.”
Catherine Lewis La Torre, CEO at British Business Bank, said: “From supporting businesses through the challenges of the last year to driving growth and innovation across a wide range of sectors, NPIF has had an immeasurable impact on the North’s business community over the last four years.
“Since joining the NPIF Strategic Oversight Board last year, I have been impressed by the resilience and ability to adapt shown by small businesses across the North.
“We’ve worked with so many inspirational and forward-thinking business leaders over the years, and there is no doubt in my mind that continuing support for our region’s community of businesses will be key to building back even better and even stronger.”
