Northern Powerhouse Investment Fund II (North West)

Business Overview

The British Business Bank launched the new Northern Powerhouse Investment Fund II in March 2024, a £660m fund set to cover the entire North of England. 

The Northern Powerhouse Investment Fund II (NPIF II), aims to build on the success of the initial fund, with the purpose of driving sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North. 

The Fund 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.

Providing loans from £25k to £2m and equity investment up to £5m, the Fund will continue investing into companies operating within the North West, Yorkshire and the Humber and Tees Valley. It is now expanded to include the whole of the North East enabling businesses across the whole of the North to access the Fund to start up, scale up or continue on their growth journey.

Since the launch of the first Northern Powerhouse Investment Fund in 2017, over £1bn of direct and private sector co-investment has been facilitated to businesses.

Nine fund managers have been appointed to manage the Northern Powerhouse Investment Fund II.

In the North West:

GC Business Finance & River Capital will provide smaller loans (£25,000 to £100,000)

FW Capital will provide larger loans (£100,000 to £2 million)

Praetura Ventures will provide equity finance (up to £5 million).

In Yorkshire and the Humber:

Business Enterprise Fund (BEF) will provide smaller loans (£25,000 and £100,000).

Mercia will provide debt finance (£100,000 to £2 million)
Mercia will provide equity finance (up to £5 million) 

In the North East:

NEL Fund Managers (NEL) will provide smaller loans (£25,000 to £100,000)

NEL Fund Managers (NEL)) will provide debt finance (£100,000 to £2 million) 

Maven Capital Partners will provide equity deals up to £5 million.

For more information about the Northern Powerhouse Investment Fund II, please visit www.northernpowerhouseinvestmentfund.co.uk

Corporate Statement

Our aim is to drive sustainable growth and prosperity across the UK, and to enable the transition to a net zero economy, by supporting access to finance for smaller businesses.

Our objectives

• Driving sustainable growth ensuring smaller businesses can access the right type of finance they need to start, survive and grow

• Backing innovation ensuring innovative businesses can access the right capital to
  start and scale

• Unlocking potential unlocking growth by ensuring entrepreneurs can access the
  finance they need regardless of where and who they are

• Building the modern, green economy financing groundbreaking solutions to climate change and helping smaller businesses transition to net zero so they thrive in a green future

The British Business Bank is 100% Government owned, but independently managed. It brings expertise and Government money to the smaller business finance markets. We don’t lend or invest directly. Instead we work with over 130 partners such as banks, leasing companies, venture capital funds and web-based platforms.

Businesses apply for finance through our partners who, because they work with us, can lend and invest more, especially to younger and faster growing companies.

Our work and corporate culture is driven and supported by our organisation’s values:

• We are committed

• We are collaborative

• We are creative

Our programmes are designed to bring benefits to smaller businesses that are start-ups, high growth, or simply viable but underfunded. We have two commercial subsidiaries, British Business Investments Ltd and British Patient Capital Ltd, which make commercial investments into providers of finance to smaller business in the UK.