British Business Bank is inviting proposals from potential fund managers to operate a £660m fund that will be used to support Liverpool city region SMEs. Tony McDonough reports
Fund managers are bing invited to bid to operate a new £660m investment fund for SMES in Merseyside and across the north of England.
Called the Northern Powerhouse Investment Fund II, it will offer a range of commercial finance options with loans from £25,000 to £2m and equity investments up to £5m.
This will cover cover Liverpool city region, Greater Manchester, Lancashire, Yorkshire and the Humber, Cheshire and Warrington, Cumbria, County Durham, Tyne & Wear, and Northumberland.
It will seeks to address an identified funding gap in the North of England and increase the supply and diversity of early-stage finance for smaller businesses.
They will aim to builds upon the success of the regional investment funds already being delivered by the British Business Bank through the Northern Powerhouse (NPIF), Midlands Engine (MEIF) and Cornwall and Isles of Scilly (CIoSIF) Investment Funds.
Since the existing funds launched, the Bank has invested more than £648m into NPIF, MEIF and CIoSIF.
Ken Cooper, managing director, Venture Solutions, at the British Business Bank, said: “The launch of the Northern Powerhouse Investment Fund II builds on the success of its predecessor.
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“It will further increase the supply and diversity of early-stage finance for smaller businesses in the region, providing finance for firms that might otherwise not receive investment and helping to break down barriers in access to finance.
“The first Northern Powerhouse Investment Fund has facilitated the investment of more than £1bn into northern businesses since it launched. It has been instrumental in the creation of thousands of new jobs and opportunities.”
The British Business Bank is now inviting proposals from potential fund managers to operate the Northern Powerhouse Investment Fund II via its website. It expects to appoint fund managers and launch the fund in early 2024.