The CEO of regional business investor NEL Fund Managers has hailed regional firms for their 鈥渞obust鈥 growth plans after reaching an investment milestone.
Since becoming regulated for the conduct of investment business in 1993, NEL Fund Managers has managed 13 different funds and has made a total of 1,026 investments across the North East. The Newcastle based organisation took on responsibility in 2018 for investing the 拢18m North East Growth Capital Fund and 拢9m North East Small Loan Fund across the region.
It has now taken the total amount it has invested from the North East Fund Supported By The European Regional Development Fund in growing regional firms past the 拢20m mark, making a total of 243 investments from its two main funds across the region. More than 拢8m of the total has been invested over the last two years through the Government-backed Coronavirus Business Interruption Loan Scheme (CBILS) and Recovery Loan Scheme (RLS), and NEL is actively looking for further investment opportunities.
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The North East Growth Capital Fund was designed to create around 790 jobs in more than 70 regional firms over the life of the programme and offers unsecured investments of up to 拢500,000 to established businesses looking to realise their growth potential.
The North East Small Loan Fund offers loans of between 拢10,000 and 拢100,000, and is designed to assist with the creation of over 1,200 new jobs in more than 320 SMEs over the life of the fund.
Chief executive Dr Yvonne Gale said: 鈥淒espite everything that鈥檚 been thrown at North East businesses and the wider regional economy over the last two and a half years, we鈥檝e continued to see a strong flow of companies coming forward with robust growth plans that required our investment support.
鈥淭o have been able to invest more than 拢20m in just over four years is testament not only to the quality of the ideas that have come our way, but also to the determination and dedication of our expert team and the region鈥檚 professional services community in making these deals happen.
鈥淲e鈥檙e proud of the positive impact that our investments are having on the regional economy and the diverse ways in which they help ambitions North East firms realise their growth potential.
鈥淚nterest in accessing capital from our portions of the North East Fund remains high, and we are continuing to work towards adding new names to our portfolio of investee businesses.鈥
Jason Hobbs, chief executive at the North East Fund, added: 鈥淭he North East Growth Capital Fund and North East Small Loan Fund allow established businesses to meet their finance needs that aren鈥檛 being met elsewhere. This direct investment not only benefits those businesses but has a knock-on effect to the wider North East economy.
鈥淥ver the past four years we鈥檝e invested almost 拢90m, alongside that we鈥檝e managed to lever in co-investment of over 拢153m. So, overall, the North East Fund has helped businesses in the region to raise almost a quarter of a billion pounds in finance. That is testament to the hard work of NEL and our other fund managers, who continue to seek more ambitious North East businesses to support.鈥
