Making the region attractive to global institutions in toughest of fundraising markets

Even in the toughest of fundraising markets, Northern investment funds have attracted significant capital flows.

A panel at the Rainmakers Conference showcased how major regional players have raised significant sums despite macro headwinds, and explored what private equity and debt funds can do to make themselves even more attractive to global institutions.

The panel was chaired by Anna Cooper, assistant editor for the West Midlands at TheBusinessDesk.com and included Gary Davison, founding partner at TDC, James Mitchell, head of strategic partnerships at Phoenix Group, Keven Parker, joint managing partner at NorthEdge, Gary Tipper, managing partner at Palatine and Lucia Villamor, partner investor relations at Endless.

Panel members agreed with the importance of stressing their regional credentials when looking to attract further backing.

Davison said: “We do drive the northern angle when we say that we can get the best returns. We identify ourselves with our investors.

“As a business based in this region we’re connected to our clients and connected to the market.”

Tipper, who said the fundraising market was toughest he’s known in thirty years, nevertheless said having a regional story was a strong selling point: “We’re a purely regional player with decisions made outside London and we use this as a differentiator when we’re fundraising.

“I believe most people want to work with regional fundraisers, people who talk the same language as them, maybe even support the same football team.

“But we still have to articulate exactly why people should invest with us instead of with someone in the South.”

Villamor added: “For us our northern heritage is a really important part of our differentiation. It’s something we always lead on.

“When we tell people we’re based in Leeds and Manchester, there is initially some surprise, but when we explain to them our industrial heritage that is something they understand.”

Parker said investment funds in the North can be complementary to their London-based counterparts.

“We’re on the ground here, we’re headquartered in Manchester, we can get to businesses earlier and can build long-term relationships with those companies,” he said.

“There’s less competition here than in London but plenty of very interesting companies to invest in.”

Mitchell said it always makes good sense to invest across different parts of the country.

“Historically people have focused on the south of England but at Phoenix we try to be democratic about allocation of capital,” he said.

“Our primary commitment to our customers is performance, but we continue to invest across the country where we see best value. We see the benefits of having diverse regional investments because that means less risk.”

He also emphasised the key role of treating clients as partners, noting: “My team has to understand what it’s like to sit on both sides of the table. You have to be able to work with your partners, so every time they have a good idea they ring you first.”

TheBusinessDesk.com believe passionately that the jobs created, specialisms developed, and the entrepreneurs unleashed give the Rainmakers community the right to a seat at the table and a voice in the debate on the economy of the North.

This platform, like the 2024 Rainmakers conference, is an opportunity to not only celebrate the contribution from funds raised and deals created, but also to look to the future at the challenges ahead.

Visit rainmakers.thebusinessdesk.com to find out more and subscribe