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A £60m investment fund that could provide finance to small and medium sized businesses and create new jobs in the North East is being launched.

Private equity group Foresight has set up the Foresight North East Fund, with £18m having been committed to its launch by Durham County Council’s Pension Fund, with additional funding also coming from the Teesside Pension Fund.

The fund will provide equity investments of up to £5m to companies headquartered or having significant operations in Tyne and Wear, Northumberland, County Durham or Teesside, as well as in Yorkshire and North Lincolnshire. It follows similar funds set up elsewhere in the country that have helped companies create thousands of jobs and Foresight is planning to open an office in Newcastle as part of the fund’s operations.

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Foresight is says its investments “are designed to create a resilient, decarbonised world and to deliver high-quality jobs that will power tomorrow’s economy”, as well as providing returns for its investors.

Matt Smith, partner at Foresight Group, said: “We are delighted to launch this fund dedicated to the North East and Yorkshire. We recognise the big impact smaller companies can make to their local areas and look forward to backing excellent teams and their growth plans.

“We are making a long-term commitment to the region, which is home to some great, growth businesses. We look forward to working closely with the business community.”

Coun Richard Bell, deputy leader and cabinet member for finance at Durham County Council, said: “We are pleased to have been able to fund the launch of the Foresight North East Fund. The fund is a great opportunity to help growth within small and medium businesses in the region, which in turn will create local jobs and attract further investment, boosting the county’s economic growth.”