We're matching ambition with the right level of investment funding.
2023 proved to be a busy year for the North East team at FW Capital, reporting a 19% increase in lending from the previous year. The team, led by Joanne Whitfield has been adapting to the increased demand for lending from local businesses.
“Despite hurdles, the North East economy has displayed resilience, especially in view of the ongoing pressures experienced by businesses. We’ve seen increased demand for lending.
The current NPIF investment phase has now completed with the British Business Bank launching the Northern Powerhouse Investment Fund II in March 2024. By the end of February this year, we will have provided over £170million of funding across the North, assisting close to 450 companies, through NPIF – FW Capital Debt Finance.
Alternative funding options are increasingly popular for SMEs who are adapting to and evolving with challenging market conditions. Access to funding is vital to encourage business growth, innovation, and job creation. At FW Capital we are actively forging new relationships to expand our funding offering and drive growth.
Last year we launched the North East Commercial Property Investment Fund with the North East LEP. This provides loans from £1million to £7million for speculative and non-speculative property developments with repayment terms available up to five years. The £35m fund will run for 15 years. We want to address a gap in the market and facilitate the delivery of new commercial property development projects that support employment creation and economic growth in the North East LEP area. The £35m will provide £119m of investment over the lifetime of the fund after repayments are recycled into new schemes. We’ve supported a variety of deals including the provision of over £1m to support a development of industrial units in Durham.
The region’s property market is buoyant and has been bucking the national trend with increased demand for finance to support local developments. Our existing property fund, The North East Property Fund which we established in 2017 hit a key milestone in 2023, surpassing £50million of investment in property schemes with many more enquiries coming through. This fund offers loans from £250,000 to £2 million to smaller construction and property development firms who have struggled to access finance through traditional channels.
As one of the UK’s largest regional fund managers, FW Capital is in a great position to help SMEs. We have a strong track record of providing flexible finance to dynamic businesses not just across the North of England, having extended our footprint into the South West of England and across Wales. July 2023 saw our expansion into the South West with a new office in Bristol to deliver finance to SMEs through the British Business Bank’s new £200 million South West Investment Fund. Similarly, in December 2023 we became the British Business Bank’s partner in delivering the Investment Fund for Wales, supporting businesses across the devolved nation. There we manage the £30m IFW – FW Capital Debt Finance fund, part of the £130m Investment Fund for Wales.
Looking ahead to 2024 we’re seeing strong demand for investment and we’re actively fundraising and looking for new investors to expand our offering for SMEs. Interest rates have stabilised and inflation is reducing, but there remain challenges, with skills shortages still being a major problem. However, businesses in the North East have demonstrated time and again they can rise to these challenges. It is really important for businesses to stay confident and embrace opportunities to grow so they do not get left behind.
Receiving financial backing from an investor that can take the time to understand their needs and tailor the right investment for them is critical.
Here is where our approach comes to the fore. We add value and provide support to each business we work with. Our focus is on trying to do things differently and spotting gaps where SMEs need help. We can then work with them, making introductions to our network where appropriate to maximise the impact of our funds to help them achieve their ambitions.
Being locally based we take great pride in our role in the rejuvenation of the North East. Local business success is the key to the growth and prosperity of the region which is why we put local businesses at the centre of what we do. We recognise it can be daunting to access finance but our team is here to help. With our strong network of local professionals and passion for business-to-business referrals we can give you the tools to help businesses to reach their full potential.”
If you want to find out how we can support your business please contact us. Call 0191 269 6969 or email info@fwcapital.co.uk
You’ll also find additional details on our website www.fwcapital.co.uk