The £120m North East Fund, supported by the Regional Development Fund, is open for business following the appointment of four specialist fund managers.
The investment fund, managed by The North East Fund, will provide financial support for more than 600 businesses, creating about 3,500 jobs and leaving a legacy of up to £80m for further investment into the region.
The Development Capital Fund, managed by Maven Capital Partners, will provide a range of funding packages valued at up to £2m, investing in established SMEs who are looking for capital to help them unlock their growth potential.
Mercia Fund Managers will look after The Venture Fund, which can invest up to £1m at any stage in the business life cycle of businesses that are engaged in innovation or developing disruptive business models.
The Growth Capital Fund will be managed by NEL Fund Managers, backing companies with investments of up to £500,000 in order to accelerate growth potential. NEL will also manage The Small Loan Fund which can support a wide variety of growth plans, typically advancing loans of between £10,000 and £50,000.
Northstar Ventures will manage The Innovation Fund, this fund will focus on businesses with strong management teams with and scalable opportunities. It will invest up to £500,000 by way of loans or equity.
Andrew Mitchell, chief executive of The North East Fund, said: “I am delighted The North East Fund is now in delivery. Northstar and NEL have been working in the region for many years and are well-established in the venture community.
“We are also pleased to welcome Maven and Mercia for the first time to the North East. These are very high-quality, well-established investment management companies, and we areconfident the skills and experience of our chosen fund managers will make a huge difference to businesses here in the North East for many years to come.”
Chair of North Tyneside Business Forum, David W Bavaird said “I am delighted that the North East Fund is now available for businesses in the region and for businesses in North Tyneside.”
“We have a phenomenal record in North Tyneside of securing funding for start-ups and both small and large companies and I am looking forward to SME’s being able to secure sources of funding to aid economic growth, business prosperity and employment in these challenging economic times.”