The Fund forms part of the £120 million North East Fund, supported by the European Regional Development Fund, and will invest across the seven local authorities of Northumberland, North Tyneside, Newcastle, South Tyneside, Gateshead, Sunderland and Durham. It has the potential to support 600 businesses and create 3,500 jobs across the region.
The Fund will provide growth capital to support ambitious small and medium sized enterprises who are looking to develop new products, enter new markets, and/or expand their current operations. To be eligible for funding a business must be located in, or intend to relocate a material part of their operations to, the North East.
Maven has significant experience of managing similar initiatives on behalf of the Northern Powerhouse and the Midlands Engine, and since 2009 has invested over £340 million in over 180 UK SMEs to support their growth ambitions.
Maven has recently stepped up its presence in the North East by opening offices in both Newcastle and Durham. Maven’s local investment team, led by Michael Vassallo, have also been active in the market through its management of the £20 million Finance Durham Fund. Recent transactions include the £850,000 investment in the fintech firm Honcho Markets, and its backing of the craft distillery, Durham Gin.
“As one of the UK’s most active private equity fund managers, and with many years’ experience of investing in and supporting SMEs across the North of England, the team at Maven is delighted to be working with North East Finance to deliver the objectives of the Fund. The North East is a hotbed for innovative smaller businesses, and there remains a clear need for this type of funding to help high-growth businesses fulfil their potential. We recognise that dynamic and well-managed businesses come in different shapes and sizes so our flexible funding solutions reflect this and can be used for a variety of corporate scenarios.
"We actively encourage established SMEs to get in touch and see how funding through the NEDCF could help drive expansion, capitalise on new contracts, or exploit market opportunities. Our aim is to help management teams achieve their goals and fulfill the company’s growth potential.”
Michael Vassallo, Investment Director at Maven