North East companies can have slice of £125m fund

Dec 15 2009 by Peter McCusker, The Journal

NORTH East companies can today apply for a slice of a new £125m venture capital fund which is expected to support more than 850 small and medium-sized companies over the next five years.

Money from the Jeremie fund will be available from January 4 and the fund mangers responsible for investing the money are today asking regional companies with investment ideas to get in touch.

It was confirmed yesterday that the fund managers include established regional venture capital funds North Star Equity Investors, NEL Fund Managers and the Finance Tree, all of Newcastle.

The three firms from outside the region who have been appointed to manage the funds are national technology firm E-Synergy, listed venture capital firm the IP Group and specialist regional investor Finance Wales Investments, which is opening its own office in the North East.

The fund managers will target loans and equity investments into business start-ups, technology-based companies and growing smaller businesses, with the aim of creating thousands of jobs in the region.

The North East Jeremie is being jointly funded by the European Investment Bank, European Regional Development Fund and One North East (ONE).

Malcolm Page, ONE deputy chief executive, said: “Our Jeremie fund is the first fund of its type in England and will help underpin a new generation of high-growth small and medium-sized businesses in the region, potentially supporting more than 5,000 jobs.

“We have appointed a team of fund mangers with proven track records of managing and delivering high-profile equity and loan investments.

“We are very excited at the potential these funds have to make a real difference to businesses right across the North East.”

Nick Brown MP, Minister for the North East, said: “I am a big supporter of this initiative. It will provide North East businesses with the credit to help enable economic growth and have a positive impact on the region’s employment base.”

Andrew Mitchell, chief executive of North East Finance, said: “This is a significant ‘win’ for the region and will help to secure access to investment for growing regional businesses over the next decade and beyond.

“These new investment funds will provide a vital boost for both new companies in the North East as well as those existing businesses looking to achieve their full potential.”

Simon Brooks, vice president of the European Investment Bank, said: “The Jeremie fund represents the beginning of a new era in venture capital investment in North East England.

“We have worked closely with One North East and the EU to develop and back this innovative fund, which we believe can provide a major boost to the regional economy by stimulating the development of a new generation of businesses which will help lead forward economic growth.”

Jeremie stands for the Joint European Resources for Micro to Medium Enterprises Initiative.

:: The fund will be open for business from January 4 and companies interested in accessing Jeremie finance can register their details now at www.onenortheast.co.uk/jeremie