The North West Fund

Coverage: Burnley, Chorley, Fylde, Hyndburn, Lancaster, Pendle, Pennine Lancashire, Preston, Ribble Valley, Rossendale, South Ribble, West Lancashire, Wyre,

Finance Type: Business Expansion, Plant and Equipment, Property Improvement, Technology,

Summary

The North West Fund is a £185,000,000 evergreen investment fund established to provide debt and equity funding from £50,000 to £2,000,000 to new or growing small and medium sized enterprises. The business must be based in, or relocating to, the North West of England that is unable to source full funding requirements from the commercial market.  The business cannot be part of larger group employing more than 250 employees where the group owns at least a 25% share of the business.  

The fund has been made possible by the NWDA and is financed by the European Regional Development Fund (ERDF) from the European Union and the European Investment Bank (EIB) under the Commission’s Joint European Resource for Micro to Medium Enterprise Initiatives – otherwise known as JEREMIE. 

Funding:

The fund can invest up to £1,500,000 Euros in any one 12 month period and is suitable for most business sectors except retail; primary production industries, such as agriculture and fisheries, defence and some property development excluding residential.   The fund cannot invest in re-financing existing commercial borrowings and failing businesses.

 There are 6 specific North West Funds, as follows:

Venture Capital is managed by Enterprise Ventures and is designed to support entrepreneurs build high growth companies for new and early-stage start ups.  The fund provides finance ranging from £50,000 to £2,000,000 and will invest in most sectors excluding Energy and Environmental, Biomedical and Digital and Creative.  Capital structures can include a combination of equity and loan support as best suit the business, in return for an equity share. 

Development Capital is managed by YFM Private Equity to provide investment from £50,000 to £2,000,000 to expanding, trading businesses that are unable to attract investment capital from traditional sources.  In return, the Fund Manager will require an equity share in the business but a combination of capital structures be sought to suit the needs of the company.

Biomedical is managed by Spark Impact and provides an equity package for growth orientated businesses operating within the Biomedical sector.  This includes companies involved in pharmaceuticals (research, development and manufacture of drugs and biopharmaceuticals); technology; diagnostics; clinical research organisations; contract manufacturing organisations; analytical services and healthcare technologies and medical devices.  The fund provides finance from £50,000 to £2,000,000 to businesses to support start-up and early stage development through to expansion plans for trading businesses.  In return, the Fund Manager will require an equity share in the business but a combination of capital structure can be provided.

Digital and Creative is managed by AXM Venture Capital and provides finance from £50,000 to £2,000,000 for growth orientated business from start up to and early stage development through to expansion for trading businesses.  In return, the Fund Manager will require an equity share in the business and capital structures can include a combination of equity and loan support.  The sector can include companies involved in advertising, architecture, arts and antiques, crafts, design, designer fashion, digital and ICT, music, publishing; radio and television ; software; computer games and electronics publishing video; film and photography and visual and performing arts.

Energy and Environmental is managed by CT Investment Partners and provides equity finance from £200,000 to £5,000,000 to growth orientated businesses from start-up through to expansion for trading businesses.  It covers numerous industry sectors including cleaner fuel production, electricity or heat generation; the transportation of heat and electricity; the end use of energy in transport; industry and the built environment; water and waste water treatment and recycling and waste management.

Business Loans is managed by FW Capital and can lend between £50,000 and £250,000 in a single round to facilitate growth plans.  It can provide follow-on funding and can co-invest with other funders.  Businesses must demonstrate a strong case for investment and provide a Business Plan clearly showing the company’s vision for growth and ability to repay the loan.  Loans can be repaid over 3 to 5 years.  Security, such as business assets or personal guarantees may be required.

Process:

Check eligibility online at www.thenorthwestfund.co.uk and then apply online.  Once an online enquiry has been received, a Fund Manager will contact the applicant and if the enquiry meets the Fund requirements, a meeting will be arranged.   Applicants will be expected to provide a Business Plan and existing businesses will need to provide the last 3 years accounts and up-to-date management accounts; 3 year forecasts – profit and loss, balance sheet, and cashflow; Statement of Personal assets/liabilities (Business Loan Fund only) and details of available matched funding, where relevant.

Funding: Upto £5,000,000

Type of Funding: Grant

Project Timeframe - Expiry Date: Thursday 31st December 2015

Eligibility: Check the website www.thenorthwestfund.co.uk

Disclaimer: The information above was accurate at the time of publishing. This is a constantly evolving directory and we will amend the details as and when required. Regenerate Pennine Lancashire is not responsible for the accuracy of external information

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