Unlocking valuable finance to empower future success for SMEs Joanne Whitfield, Fund Director at FW Capital talks about an exciting new fund to support Teesside businesses.
“Small and medium-sized enterprises (SMEs) are the lifeblood of our economy accounting for 99.2% of the UK’s business population.* It is crucial that we invest in their success. We’re stepping up our commitment to Teesside SMEs with the launch of a new £20 million fund which aims to tackle identified funding gaps in the region.
We have a strong record of investing in the North East and since 2013 we’ve invested close to £38 million into 62 companies in Teesside alone. Through The Teesside Flexible Investment Fund we will build on this track record and aim to provide total investment in the region of £68 million because the money from repayments and exits will be recycled into new deals.
Designed by FW Capital with investment from the Teesside Pension Fund, the fund will support economic development in Hartlepool, Middlesbrough, Stockton-OnTees and Redcar & Cleveland through a mix of property development funding, contractrelated bond finance and finance to support management teams in buying a business.
There’s lots going on in the Teesside area with exciting plans for regeneration and this new fund will unlock much-needed finance for SMEs and provide valuable investment for the future. We’ve seen first-hand how important it is to have the right backing and specifically created a fund that supports a variety of needs to match the diversity we are seeing across the region. Businesses know us for providing property development funding and bond finance in the North East and we’re excited to be expanding our offering into supporting management teams looking to buy a business. Assisting the transition of business ownership safeguards this legacy for the future.
The fund will build on the success of our previous investment activities in the region and aims to make a significant economic impact in Teesside by providing local businesses with investment ranging from £100,000 to £3 million.
In providing this much needed alternative finance we aim to drive more opportunities and remove barriers for growth to local businesses resulting in job creation and economic prosperity. We’re inviting businesses to contact us to discuss how we can assist them.”
The new fund will follow the success of the Tees Valley Catalyst Fund, which FW Capital ran on behalf of the Tees Valley Combined Authority and ended in 2023. This provided bond finance, facilitating contracts of £78 million across Teesside. The new fund will also allow FW Capital to support property developers in Teesside, using its experience in funding residential and non-speculative commercial developments in other areas of the North East.
Cllr Julia Rostron, Chair of the Teesside Pension Fund Committee, added: “FW Capital has been investing in local business and enterprise for over a decade, and has played a key role in supporting growth and generating prosperity.
“The new Flexible Investment Fund in partnership with the Teesside Pension Fund will build on that work with SMEs which will deliver much-needed new opportunities for further growth and the creation of highquality, sustainable jobs.”
The Teesside Flexible Investment Fund can be used for:
Loans from £250,000 to £3 million for residential and non-speculative commercial developments. Providing up to 100 percent of build costs for suitable schemes with repayment terms available up to three years.
Loans from £100,000 to £2 million for contract-related bonds including advance payment guarantees, performance, warranty, highways and water authority bonds. Repayment terms are available of up to two years.
Loans and equity investments from £250,000 to £3 million for management teams seeking to own and run their own business. Investments are available between 1-5 years.
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 Or visit our website www.fwcapital.co.uk
*Source UK Small Business Statistics 2024 – Start Ups and FSB