Q&A with Mike Guellard
Uploaded by Suzanne Smith in NEL News & Insights on October 17, 2024
In this Q&A, we hear from Mike Guellard, senior investment executive at NEL Fund Managers, as he discusses the vital role of funds such as the Northern Powerhouse Investment Fund II (NPIF II) in the North East. Mike offers his expert perspective on why the region is particularly well-positioned for investment and highlights the factors that make it a prime target for growth.
Why is it so important to have a fund dedicated to the North?
The North of England, and especially regions like the North East and Tees Valley, are faced with unique economic challenges by comparison to other parts of the country. Traditional funding sources are often limited, and this creates a significant gap for ambitious businesses that require growth capital. NPIF II’s dedicated funding ensures that these regions receive the investment they need to unlock their potential. It’s vital that businesses can speak to a local investment team who understand specific challenges and can add further value through strategic support to assist in executing their growth plans and facilitate introductions to local expertise.
What makes the North East so special as an economy?
The North East boasts a rich industrial heritage, but it is also incredibly forward-facing. The region is a hub for innovation in sectors including manufacturing, digital tech, renewable energy, and life sciences. The skills, creativity, and work ethic found here are second to none, and we are seeing increasing numbers of businesses that want to scale up and make a real impact, not just on the regional stage, but nationally and internationally. The North East’s economic resilience and adaptability, combined with its strong sense of community, make it a very exciting place to be investing funds.
How have you found being a Fund Manager for NPIF II so far?
Being able to meet so many business leaders who are passionate about growing their enterprises has been both incredibly interesting and rewarding when you can help enable their vision. NEL is sector agnostic, no two businesses cases are ever the same. One day I’ll be working with an energy renewables business and the next with an established manufacturer—and that diversity is what keeps it exciting. What I have really enjoyed is seeing how NPIF II is making a tangible difference in the local economy by helping businesses expand their operations, creating and safeguarding jobs and driving innovation. The impact is immediate and real.
How have businesses responded to the new fund?
The response since launching earlier this year has been overwhelmingly positive. There is a real appetite for growth, and business owners across the region have been actively seeking the kind of flexible finance that NPIF II provides. The relationship-based approach of our locally based team has proven particularly popular; in contrast to the increasingly centralised and algorithm lead decision making of many other lenders.
What are the benefits of debt investment for businesses?
Debt investment enables business owners to access growth capital while retaining ownership and control of their enterprise. Unlike equity investment, where a company would sell a proportion of the business to raise capital, debt investment allows owners to retain their shareholdings and scale at their own pace. Fixed debt repayments are predictable, allowing businesses to plan their cash flow with confidence.
How will NEL be targeting businesses in harder-to-reach areas ?
We are committed to ensuring that all businesses, irrespective of their location, have fair access to growth capital. We will be working closely with local partners, business networks, and regional intermediaries to make sure we are visible and accessible to businesses in rural or underserved areas. This approach will be complemented by running regular events and using our digital platforms to promote funds . By having boots on the ground and staying proactive, we can ensure that NPIF II benefits businesses across the whole region.
What do you hope to achieve as a fund manager for NPIF II ?
Ultimately, I want to support ambitious businesses across the whole of the North East including the Tees Valley to reach their full potential. The goal is to provide access to capital that enables businesses to scale, create jobs, and contribute to the regional economy. I would also hope to build a legacy of success stories where NPIF II has played a part in delivering growth, whether that is helping an early-stage business become a regional market leader or supporting an established company to expand internationally. Beyond financial returns, it’s about creating lasting positive impact for the businesses and communities we invest in.