May 1, 2018
The £120 million North East Fund, supported by the Regional Development Fund, has announced it is open for business following the appointment of four specialist fund managers.
The investment fund, managed by The North East Fund Limited, will provide financial support for more than 600 businesses, creating around 3500 jobs and delivering a legacy of up to £80m for further investment into the region.
Comprising five distinct funds that are available to small and medium sized enterprises (SMEs), the investment programme will be delivered by fund managers based in the North East, and will support businesses across Durham, Northumberland and Tyne and Wear.
The Development Capital Fund, managed by Maven Capital Partners, will provide a range of funding packages valued at up to £2m, investing in established SMEs who are looking for capital to help them unlock their growth potential.
Mercia Fund Managers will deliver The Venture Fund, which can invest up to £1m at any stage in the business life cycle of firms that are engaged in innovation or developing disruptive business models.
The Growth Capital Fund will be managed by NEL Fund Managers, backing ambitious businesses with investments of up to £500,000 in order to accelerate growth potential. NEL will also manage The Small Loan Fund, which can support a wide variety of growth plans, typically advancing loans of between £10,000 and £50,000.
Northstar Ventures will manage The Innovation Fund, this fund will focus on businesses with strong management teams with and scalable opportunities. It will invest up to £500,000 by way of loans or equity.
Andrew Mitchell, chief executive of the North East Fund Limited, said: “I am delighted the North East Fund is now in delivery. Northstar and NEL have been working in the region for many years and are well-established in the venture community.
“We are also pleased to welcome Maven and Mercia for the first time to the North East. These are very high-quality, well-established investment management companies, and we are confident the skills and experience of our chosen fund managers will make a huge difference to businesses here in the North East for many years to come.”
The North East LEP led the project team that secured the funding for the region. The agreement was signed on March 23, 2018, by representatives from the European Investment Bank (EIB) and The North East Fund Limited (TNEFL).