The British Business Bank (BBB) has announced the opening of the Northern Powerhouse Investment Fund (NPIF), as well as the appointment of fund managers who will identify and make the investments in SMEs across the Northern Local Enterprise Partnerships (LEPs).
Liverpool MSIF has been appointed to jointly manage the £10m NPIF-BFS & MSIF Micro Finance Fund with Business Finance Solutions to provide loans between £25k and £100k to SMEs across the North West.
In addition, MSIF will partner with Maven Capital Partners which has been appointed to manage the £57.5m NPIF Maven Equity Finance fund, to deliver equity finance to businesses across the Liverpool City Region. The fund will also provide investments to businesses primarily across Lancashire, Greater Manchester, Liverpool, Cumbria and Cheshire and also in Yorkshire & Humber and Tees Valley.
The Northern Powerhouse Investment Fund of over £400m, was announced by the Government in 2015 as a partnership between the BBB, a number of Northern England LEPs, the European Investment Bank and the European Regional Development Fund. The Fund will target businesses with an operational trading base in the region, providing funding of between £25,000 and £2 million to each SME, in the form of microfinance, debt and equity investments.
MSIF’s COO Lisa Greenhalgh said: “We are delighted to have been appointed by the BBB to manage funding through the Northern Powerhouse Investment Fund."
“Small businesses are the backbone of our economy. This fund will create jobs, encourage innovation and boost economic growth across the North of England."
“The new Funds complement our existing offering and as a result, we can now assist almost any business requiring funding with the range of funds we have under management."
“NPIF has a particular focus on supporting the growth aspirations of high-potential SMEs that can contribute to regional economic development, job creation and innovation."
“We are looking to invest in viable, dynamic regionally based SMEs, with innovative products and services, strong business plans and highly capable management teams, that are struggling to access the funding that will allow them to develop their businesses and market offering."
“We can begin investing the funds imminently and would like to encourage potential applicants to come and speak to us straight away.”
MSIF manages a number of funds including its own money which was created from returns on investments through its original funding through the ERDF’s Objective One Programme.
Since launching in 1994 MSIF has invested £163.2m in over 2000 SMEs creating/safeguarding around 15,000 jobs and has attracted almost £300m in private sector funding on the back of its investments.
The project is supported financially by the European Union. Attracting investment from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.