The British Business Bank is on course to launch a £70 million investment fund this autumn, aimed at driving the growth of smaller businesses in Northern Ireland.
The Investment Fund for Northern Ireland is one of a series of Nations and Regions Investment Funds being launched by the British Business Bank which will deliver a £1.6bn commitment of new funding to smaller businesses across the UK. The fund will offer a range of commercial finance options with loans from £25,000 to £2m and equity investment of up to £5m.
By increasing the supply and diversity of early-stage finance for smaller businesses in Northern Ireland, it aims to tackle an identified funding gap. Similar funds are planned for Wales, Scotland and the South West of England, along with follow-on funds for the Midlands and the North of England.
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The new funds follow the success of the regional investment funds already being delivered by the British Business Bank through the Northern Powerhouse Investment Fund (NPIF), Midlands Engine Investment Fund (MEIF), Growth Finance Fund (NI) and Cornwall and the Isles of Scilly Investment Fund (CIoSIF).
Since the existing investment funds launched, the Bank has invested more than £629m into NPIF, MEIF, CIoSIF regions, and Northern Ireland, crowding in more than £963m in additional private sector co-investment and supporting over 1,825 smaller businesses.
Ken Cooper, Managing Director of Venture Solutions at the British Business Bank, said: “The new Investment Fund for Northern Ireland builds on the success of the Bank’s existing regional funds and is designed to increase the supply and diversity of finance available to smaller businesses in Northern Ireland.
“The overall levels of equity investment and also private debt lending remain much lower than Northern Ireland’s share of the UK’s small business population. Hence we’ll be working closely with the local small business finance ecosystem to ensure the fund provides support to innovative, ambitious business owners across the country.
“Given the geographical spread of Northern Ireland’s smaller business population, connecting with entrepreneurs in some of the more rural and hard-to-reach areas will be an important focus of the fund.”
The Investment Fund for Northern Ireland will operate across two tiers: debt (£25k-£2m) and equity (up to £5m).
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The British Business Bank is now inviting proposals from potential fund managers to operate the new Investment Fund for Northern Ireland via its website. It expects to appoint fund managers in Summer 2023 ahead of launching in the autumn.
The British Business Bank is responsible for administering the Nations and Regions Investment Funds on behalf of the UK government. The Bank is establishing investment funds in areas not currently served by the Bank’s existing regional funding programme before launching follow-on investment funds in existing fund areas.
Source: Written from press release
