Regional fund manager NEL has secured an additional £21.5 million to invest in businesses across the North of England. The new capital will be added to NEL Fund Manager's existing funds, backed by the British Business Bank, to provide loans ranging from £25,000 to £2 million to businesses with high-growth potential.
NEL reports that it has invested £17 million in firms over the past two years, with investments supporting an additional £4.5 million in private funds and an estimated 350 direct jobs created.
Paul Scott, CEO of NEL, said: “As the most active private credit investor across the North East, this £21.5 million expansion to our investment offering comes at exactly the right time. A strong pipeline of opportunities is emerging across the North, and SMEs need access to the capital required to seize them.
“Businesses are really benefiting from our value proposition with practical ongoing support once the investment is made. Equally importantly, we are delivering for our investors with strong portfolio performance and impact; they are not mutually exclusive. We’re demonstrating the SME landscape is an investable institutional asset class that can be scaled.
“By executing on this with our public and private sector stakeholders, NEL can be the conduit to attract more capital into the region and channel into growing SMEs where a lot of the innovation and job creation is happening. The recent Great North Investment Summit highlighted both the scale of the opportunity and the need to ensure investment reaches regional supply chains.
“With large-scale infrastructure projects and increasing levels of inward investment, our focus is on deploying capital at pace so that SMEs can participate in this growth, capture the value, and convert it into real economic impact, both across the foundational economy and high growth sectors. Delivering this through a fund manager that is anchored and headquartered in the region, only adds to the economic multiplier effect.”
John McCabe, chief executive of the North East Chamber of Commerce, added: “NEL’s £21.5 million expansion to their investment offering is excellent news for businesses in the North East. The funding will help build local capability, attract investment, support ambitious businesses and create high-quality jobs in the region.
“We believe in the power of place-based approaches – solutions designed with, for and by the North East – to unlock our region’s full potential. As a regionally headquartered fund manager, NEL is helping to build resilience in the financial ecosystem, ensuring businesses can access the capital they need to grow while developing the skills, experience and confidence that underpin a thriving regional economy.”
James Katirai, head of investment at NEL, added: “Securing this additional £21.5 million of funding is a strong endorsement of our track record, the quality of our investment portfolio, and the impact we are delivering. Demand for our finance continues to grow as ambitious businesses across the North seek funding that is both flexible and genuinely supportive.
“This increased allocation, complemented by NEL’s More Than Capital strategic support model, allows us to invest in more high‑quality businesses, helping them scale, create jobs and contribute to sustainable economic growth across the region.”
