A Northern Powerhouse Investment fund, jointly managed by River Capital in Liverpool, has invested £1.4m in 23 businesses since its launch a year ago. Tony McDonough reports

An SME investment fund managed by River Capital in Liverpool has so far invested £1.4m in 23 businesses in the North West.

In March 2024, the Northern Powerhouse Investment Fund II (NPIF II) was launched. It is managed by River Capital and GC Business Finance. Businesses that have secured funding are from a variety of sectors and localities in the North West.

They range from retailers and technology innovators to specialty cafes and include new businesses seeking their first loan through to more established businesses seeking growth capital.

Birkenhead-based domiciliary care company, House of Care, secured a £25,000 NPIF II funding package in what was one of the first NPIF II deals in Liverpool city region. The investment will support its expansion plans, enabling it to take on additional contracts.

John Gray, head of debt at River Capital said it had already worked with GCBF on the first Northern Powerhouse Investment Fund, which delivered £13.5m of funding to businesses.

He added:”It has been great to partner once again to support the provision of NPIF II, having already provided more than £1m of smaller loans to North West-based businesses through the fund.

“We have worked to reach even further afield, targeting businesses in hard-to-reach areas like Cumbria, ensuring that NPIF II is reaching the whole of the North West.”

Other North West business backed by the fund included a café called Black Milk, selling milkshakes, cereals, baked goods and pancakes, and Private Ambulance Services which offers dedicated collection and delivery services of the deceased.

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The £660m NPIF II covers the entire North of England and provides loans from £25,000 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.

Sue Barnard, senior investment manager, at the British Business Bank, said: “Almost a year on from its launch, it is brilliant to see such a range of businesses driving their growth with the support of NPIF II funding.

“After GCBF and River Capital’s success through the first NPIF, it’s great to see the consortium continue, and the £1m+ they have provided through smaller loans so far has been transformational for these local businesses.”