NEL views on the launch of the Northern Powerhouse Investment Fund II

Uploaded by in NEL News & Insights on April 3, 2024

The British Business Bank has recently launched the Northern Powerhouse Investment Fund II (NPIF II), bringing with it £660m to invest in businesses across the North, aimed at fostering growth and prosperity.

NEL will be delivering the NEL Debt Finance Fund and NEL Smaller Loans Fund in the North East and Tees Valley, enabling investments of £25,000 to £2m to support growing ambitious businesses. Here we chat to members of the NEL team to see what the Funds mean to them.

Jane Siddle, Senior Investment Executive

“NEL has been investing in North East England for over 30 years. In that time we have built enduring relationships both within the business community in which we invest and with the expert professional network who we work with to help businesses access finance, create jobs, and drive sustainable growth in the region.

“The relationships we have are evident through the repeat distinct investments we have made over the years, for example, I am currently working with a business to secure investment from the NPIFII Debt Finance Fund that I first met back in 2014.

“It’s always pleasing when a business that is looking to access finance for growth is recommended to have a conversation with NEL, and it is very satisfying if we are able to invest in and support that business to bring its growth plans to fruition.

“I believe that ambitious owner-managers seeking investment for growth and the professional network choose to work with NEL because they understand the importance of relationships and the value added during and post investment. The launch of NPIF II means having funds to enable more businesses to access finance and support the sustainable growth of smaller businesses.

“NEL’s relationship-based lending model has enabled us to accelerate the growth of thousands of business expansion plans with access to finance and applied knowledge and expertise; these new funds will increase that number and impact further, driving economic growth and prosperity across the region.”

Jonathan Armitage, Investment Executive

“I’m naturally delighted that NEL has been appointed to manage the NPIF II Debt Finance and Smaller Loans Funds. These will allow us to continue supporting ambitious SMEs right across the region by providing businesses across all stages and sectors with access to funding to help them exploit opportunities and realise their potential.

“Born and raised in Darlington, I’m personally extremely pleased that these funds will also expand NEL’s geographic reach right across the region, including my hometown and across the Tees Valley.

“The North East & Tees Valley region houses a diverse and innovative business community that enjoys collaborating and celebrating one another’s success. I think it’s important that there is one central debt-based fund manager that can help these businesses connect and grow.

“We’re now accepting applications for funding from the NPIF II funds. I’m looking forward to working with businesses right across the region to secure the finance they need to achieve their growth plans.”

Mark Wharton, Chartered ESG Investment Manager

“Through the new NPIF II funds one of our focus areas will be investing in the growth of businesses with robust sustainability strategies and those with ESG at the core of their operations.

“We recognise though that not all businesses are at that stage, and so we will also be looking to support the businesses we invest in to consider making necessary steps to help realise a sustainable, diverse, and low carbon future.

“These businesses have the potential to make a huge step change in the region and we are delighted to have the finance available to help them achieve that.”

Mike Guellard, Senior Investment Executive

“The recent launch of NPIF II brings with it a sizable increase to NEL’s upper investment limit. We can now invest up to £2m through debt financing, broadening our ability to support larger businesses and deliver greater impact.

“It is vital that businesses have access to the right type of finance to help them develop at each stage of their growth journey. Equally, it is mutually beneficial for the businesses to work alongside a fund manager like NEL who can support business owners and managers through the intricacies of scaling an enterprise in the region.

“Our finance is solutions focussed, but our investment strategy is about more than just capital. NEL’s locally-based team are skilled and experienced in supporting businesses with ambitious growth plans – irrespective of speed or scale – and are fully aligned in a shared ambition to accelerate commercial potential within the local economy.

“We are delighted to be managing these funds on behalf of the British Business Bank, and we look forward to back the region’s best management teams over the coming years.”

Susan Snowdon, Investment Executive

“It’s fantastic to be involved with NPIF II, which is making finance accessible to new and growing businesses right across the region.

“This finance makes a real difference, from creating jobs and opportunities to increasing the diversity and competitiveness of the North East business community.

I’m personally very passionate about business growth and about helping business owners on their growth journey, so I am really looking forward to working with those seeking finance to help them achieve their ambitions.

“If you are a business owner and the above fits with you, I’d welcome a conversation with you and would love to hear from you.”

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