Tees firm benefits from first investment using the £20million Teesside Flexible Investment Fund.
FW Capital launched the £20 million Teesside Flexible Investment Fund in 2024, to tackle identified funding gaps in the region and assist economic growth.
The Fund, launched with investment from the Teesside Pension Fund, is supporting economic development in Hartlepool, Middlesbrough, Stockton-on-Tees and Redcar and Cleveland through a mix of property development funding, contractrelated bond finance and finance to support management teams in buying a business.
The Fund has now completed its first investment, with Teesside stainless steel alloy specialist and manufacturer Paralloy Group receiving a seven-figure loan.
The investment has helped Paralloy with their next stage of growth, facilitating activities that will generate new jobs locally and have a significant impact on the Teesside economy while meeting the increased demands from industrial markets and advances in new technologies.
Since the launch of its Billingham site in 1967, Paralloy has specialised in the transformation of raw elements into world-class products that power the Syngas and Ethylene industries. Paralloy’s products are used for power generation and transportation for manufacturing and critical chemical industries.
Today Paralloy is a global business working across five sites in the UK, with headquarters in Billingham and a presence in Middlesbrough and Sheffield. It is the third largest operator in its field and doubled its workforce in the last five years to employ over 500 people across the North East and over 1000 globally. The firm was also awarded a 2024 King’s Award for Enterprise.
Robert McGowan CEO said: “Paralloy is proud to be based in Teesside, employing local people and showcasing our local capabilities alongside our global presence. We’re committed to driving economic growth and this is why we are working with FW Capital and the Teesside Flexible Investment Fund.
The North East is making a solid claim as a key player in the UK’s energy transition and we’re well positioned to support the next generation of industry and the fuels of the future.”
Joanne Whitfield, Fund Director at FW Capital added: “It’s fantastic to complete the first deal under the Teesside Flexible Investment Fund. We’ve been supporting businesses in Teesside for 13 years and Paralloy is a great example of how the finance from our new fund can help firms to scale up following acquisition, bringing new opportunities and jobs to the area. We have a long-standing relationship with Paralloy and this investment has been an opportunity for us to support their next stage of growth. There’s a lot happening in Teesside and we’re thrilled to help unlock vital finance for local businesses with this new fund. We are keen to talk to businesses across the region about their future plans and how we might be able to support them.”
The Teesside Flexible Investment Fund can be used for:
Loans for residential and nonspeculative commercial developments. Providing up to 100 percent of build costs for suitable schemes with repayment terms available up to three years.
Loans 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 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 email info@fwcapital.co.uk or visit our website www.fwcapital.co.uk