Award-winning IT, security, and communications provider Advantex has secured a seven-figure investment from NPIF II – NEL Debt Finance, which is managed by NEL Fund Managers as part of the Northern Powerhouse Investment Fund II (NPIF II), to support a successful management buyout and drive its next phase of growth.
Working alongside FRP Advisory and Mincoffs Solicitors, the investment has enabled the planned exit of one of the company’s founding brothers and positioned the business to move forward under the leadership of David O’Connell, Managing Director and remaining founder.
David O’Connell said: “NEL were very efficient and provided a great customer experience, quickly understanding our needs and shaping their offering to fit. Securing the required funding in a timely manner has given Advantex the ability to focus fully on our growth strategy and capitalise on the opportunities ahead.”
With more than 20 years’ experience, Advantex is the North East’s only single-source integrator, specialising in keeping organisations secure, connected, and operating with confidence through its highly accredited IT, cybersecurity, and communications services. The business delivers high-quality solutions across the UK, supported by a growing team and an ambitious growth strategy.
The funding round was led by Jane Siddle, Senior Investment Executive at NEL Fund Managers.
Jane Siddle added: “It has been a pleasure working collaboratively with Dave, the senior management team and FRP Advisory on this funding. The process demonstrated the real value of strong advisor partnerships and a management team with clear strategic plans, a compelling value proposition and a technology-enabled business model. Advantex operates in a sector where organisations increasingly rely on innovative, secure and connected technology solutions, and the business is well positioned to meet that demand. NEL looks forward to supporting Advantex beyond the investment, working closely with the team to help deliver its growth ambitions and capitalise on the opportunities ahead.”
Sarah Newbould, Senior Investment Manager at the British Business Bank said: “Advantex is a strong example of the innovative, technology-led businesses we are supporting through NPIF II. By unlocking growth in sectors aligned with the government’s Industrial Strategy and strengthening the North East’s ability to compete nationally through technology innovation, investments like this help drive sustainable growth across the region.”
Operated by British Business Bank, the £660m Northern Powerhouse Investment Fund II covers the entire North and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.
The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North. The Northern Powerhouse Investment Fund II 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.
NEL Fund Managers are also managing NPIF II – NEL Smaller Loans which offers investments from £25,000 to £100,000 to new and growing businesses.
For more information about NEL, please visit www.nel.co.uk or contact the investment team on 0345 369 7007.
Pictured from left to right, Sarah Newbould, Senior Investment Manager at the British Business Bank, Dave O’Connell, Managing Director and Founder of Advantex, Lucy Elliott, Associate Director at FRP Advisory, Celia Yeates, Finance Manager at Advantex, Jane Siddle, Senior Investment Executive at NEL Fund Managers & Chris Hughes, Partner at Mincoffs Solictiors