Economic ambition is developing in region
Oct 20 2010 by Iain Laing, The Journal
THE breadth and ambition of the modern North East economy is being demonstrated by the applications being made to the new Finance for Business North East Growth Fund, according to the company responsible for its management.
The growth fund, which is managed by NEL Fund Managers, is designed to provide ambitious regional businesses which are at a development and growth stage with access to investment capital for expanding their operations and creating jobs.
Whilst many investment applications have come from sectors that are traditionally associated with the North East, such as manufacturing and engineering, a significant number of others have been received from newer industries that have only recently become established in the region.
Expanding sectors that have been well-represented among potential Growth Fund investees include technology, tourism, and workplace training, as well as ‘asset light’ niche markets such as event management, media and the creative industries.
Simon Johnson, senior investment executive at NEL, believes that the diversity of these enquiries augurs well for the regional economy as it battles to recover from the impact of the recession.
He said: “We’ve been extremely pleased at both the quality and the number of applications and enquiries we’ve had about the Growth Fund, and especially with the range of industries that have been represented within them.
“Industries that would have been unheard of in the North East just a few years ago now have a crucial role to play in its economic resurgence, and the ambition that businesses in these burgeoning sectors are showing through their Growth Fund investment applications demonstrates they are ready to accept this challenge.”
The Growth Fund forms part of the wider Finance for Business North East Fund, which is managed by North East Finance and which will see £125m of investment capital injected into the region by the European Investment Bank, the European Regional Development Fund 2007-13 and the regional development agency over the next five years.
It aims to aid the creation of over 1,500 jobs in the region by the end of 2014, as well as helping to safeguard another 1,300.
NEL has received formal investment applications with completed business plans to the value of £27m since the Growth Fund was launched nine months ago, but is still actively encouraging North East companies to put themselves forward for investment consideration.
Mr Johnson added: “Growth Fund capital is readily available to ambitious regional businesses with strong management teams and robust business plans, and at a time when finding investment capital is challenging to say the least, it represents what we believe to be the best option for firms needing to secure outside investment to realise their development plans.”
NEL is looking to make around 130 investments over the five-year life span of the Growth Fund, and is actively looking to speak to ambitious north east companies with robust business plans.
