Maven Capital Partners Appointed To Manage The £27 Million North East Development Capital Fund

Ambitious SMEs across the region will benefit from new funding available.

Home to some of the UK’s fastest growing, innovative private companies, the North East is a hotbed for dynamic businesses with impressive growth potential.

For businesses across the region an exciting new funding opportunity is available through The North East Fund, a £120 million investment programme available to SMEs across Durham, Northumberland and Tyne and Wear. Supported by the European Regional Development Fund, the Fund will invest across the seven local authorities in the North East with the aim to support 600 businesses and create 3,500 jobs.

Appointed to manage the £27 million North East Development Capital Fund (NEDCF), supported by the European Regional Development Fund, part of the £120 million investment programme, Maven will provide equity, debt and mezzanine funding of between £400,000 and £2 million to high growth and established businesses. The Fund will support ambitious small and medium sized enterprises (SMEs) who are looking to develop new products, enter new markets, and/or expand their current operations.

Maven targets dynamic companies with strong management teams and can tailor funding packages to individual business needs providing both strategic and operational support. As one of the leading SME finance providers in the UK, Maven can lead or syndicate investments and Maven’s other funds can provide up to £15 million in a single transaction to finance development capital and MBOs.

Maven has significant experience of managing similar investment funds on behalf of the Northern Powerhouse and the Midlands Engine, and since 2009 has invested over £340 million in over 180 UK SMEs to support their growth ambitions.

With established offices open in Newcastle and Durham adding to Maven’s strong presence across the North of England, Maven is well-resourced to provide the necessary support to local companies, both in terms of the initial investment process and the ongoing support as those businesses grow.

Maven’s local investment team, led by Michael Vassallo, has been active in the market through its management of the £20 million Finance Durham Fund. Recent transactions include the investment in the fintech firm Honcho Markets, and its backing of the craft distillery, Durham Gin.

Michael Vassallo, Investment Director at Maven said: “As one of the UK’s most active private equity fund managers, and with many years’ experience of investing in and supporting SMEs across the North of England, the team at Maven is delighted to be working with North East Finance to deliver the objectives of the Fund. The North East is a hub for innovative smaller businesses, and there remains a clear need for this type of funding to help highgrowth businesses fulfil their potential.

We recognise that dynamic and well-managed businesses come in different shapes and sizes so our flexible funding solutions reflect this and can be used for a variety of corporate scenarios.

We actively encourage high growth and established SMEs to get in touch to see how funding through the NEDCF could help drive expansion, capitalise on new contracts, or exploit market opportunities. Our aim is to help management teams achieve their goals and fulfil the company’s growth potential.

The NEDCF can provide the financial resources to back business growth for ambitious companies. To be eligible for funding a business must be located in, or intend to relocate a material part of their operations to, the North East.