£4m growth fund extension opens

£4m growth fund extension opens

North East businesses that need investment are being encouraged to bid for funding from a new £4m extension to the Finance for Business North East Growth Fund.

Run by regional fund management firm NEL Fund Managers, the Growth Fund is a general investment fund aimed at businesses in the development and growth stage based anywhere in the North East. 

Since the fund launched in 2010, NEL has made 126 investments from it with an average deal value of over £200,000. 

NEL is now looking to make up to 15 further investments over the coming year of between £50,000 and £400,000, and is looking to hear from regional firms who have plans to expand during 2016 and beyond.

The total value of investments made by NEL from the Growth Fund passed the £25m mark at the beginning of this year, with around £5m of development capital provided to regional businesses during 2015 alone.

Yvonne Gale, chief executive at NEL, says: “Having a consistent flow of investment capital available as regional businesses evolve through different stages of development is absolutely essential, and securing this extension to the Growth Fund is great news both for ourselves and the wider North East economy.

"The investments we make are designed to both create and sustain regional employment, as well as to encourage wealth creation and investment in our supply chain, and we have many examples in our investee portfolio of North East firms that have used Growth Fund capital to do just that by securing national and international commercial success.