Cocktail bars, manufacturers, training providers, recruiters and accountants are among the businesses to have benefited from a new North East fund, its manager has revealed.
Newcastle investment company NEL Fund Managers says it has chalked up a record-breaking quarter after striking a series of strategic investments across a range of sectors. The organisation has delivered key investments through NPIF II - NEL Smaller Loans Fund and NPIF II – NEL Debt Finance Fund, the two funds it manages as part of the Northern Powerhouse Investment Fund II (NPIF II).
The expanded fund, operated by the British Business Bank, was launched last year to offer a range of commercial finance options with smaller loans from £25,000 to £100,000, debt finance from £100,000 to £2m and equity investment up to £5m. The total amount invested in companies over the last quarter has not been disclosed, but NEL says it has marked a record period, reinforcing its commitment to driving regional business growth.
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Standout deals struck in the three-month period include a five-figure investment from the NPIF II - NEL Smaller Loans Fund given to Newcastle-based Canny Folk hospitality group, to help expand by adding a new Mother Mercy cocktail bar in Heaton.
Founder and managing director Neil Donachie said: “NEL clearly understood our strategy of maximising concentration in the North East, creating jobs and progression opportunities in a business recently accredited as a Great Place to Work. The investment team are highly engaged, very responsive and took time to truly understand the essence of the brand, offering the flexibility we needed to move quickly on the acquisition of the Heaton site.”
Ouseburn based Duo Global Consulting received a six-figure investment from the same fund to was made to support growth, staff recruitment and increased marketing. The company is using the investment to drive forward work on Perform, its management development platform powered by behavioural science.
Laura Weaving, CEO of Perform, said: “This investment helps us scale that support to more businesses - improving team performance, reducing management strain, and making management actually work at every level.”
A six-figure investment from the NPIF II – NEL Debt Finance Fund was made into North Shields-based energy equipment business Greener Solutions Group, to support multimillion-pound contracts and continued growth, while Durham-based WL Distillery received a five-figure investment to upgrade manufacturing and improve its site.
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Other companies to benefit from investments include Durham-based JH Partners, Newcastle financial services marketing agency GrowthProvision, Middlesbrough’s Achieve Hospitality Limited and Achieve Professionals Limited, Pulse Accountants, The Training MarketPlace, Rosebirch, Northumberland-based Skills North East and RPG Medical.
Paul Scott CEO of NEL, said: “It’s been a fabulous performance by the team in what can only be described as a volatile business environment. With the support of British Business Bank as an investor, it’s great to see NEL’s value proposition resonating with SME’s, intermediaries and see the results coming through as we execute at pace against our long term strategy.”
Sarah Newbould, senior investment manager at British Business Bank, added: “It’s been a busy time for NEL and NPIF II, working with a range of ambitious businesses from a variety of sectors. From businesses aiming to create a more sustainable future through increasing energy efficiency like Greener Solutions group, to a distillery brand anchored in its North East roots, NPIF II is proud to help entrepreneurs to achieve their ambitions across the North.”