North East investment firm NEL Fund Managers has announced a landmark year of activity, having completed a record 34 investments into small and medium-sized enterprises (SMEs) throughout 2025.
Diverse Portfolio Highlights Regional Ambition
Operating from its Gateshead base, the firm is currently deploying capital through two key vehicles: the NPIF II – NEL Smaller Loans Fund and the NPIF II – NEL Debt Finance Fund. Both are part of the wider Northern Powerhouse Investment Fund II (NPIF II). The breadth of businesses supported this year underscores a sector-agnostic approach, ranging from online retail and IT services to green technology.
One standout deal involved a six-figure investment into Durham-based electric vehicle charging point operator, EV Smart. The funding, sourced from the NPIF II – NEL Smaller Loans Fund, is earmarked for team expansion across operations, project delivery, and customer support.
Neil Bowater, CEO of EV Smart, commented: "Our collaboration with NEL has been seamless. They deeply understood our business and the EV charging sector's potential. The investment is structured to fuel our rapid growth while letting us retain strategic control. This support will help us deploy more reliable charge points across the region and create skilled jobs."
Substantial Deals Fuel Management Buyouts and Expansion
In a more substantial transaction, a seven-figure sum from the NPIF II – NEL Debt Finance Fund facilitated the management buyout of Gateshead IT communications specialist Advantex. This move enabled the exit of one founding brother, with Managing Director David O’Connell taking the helm alongside the remaining founder.
On a smaller but equally significant scale, Sunderland entrepreneur Elliott Usher secured a five-figure investment from the smaller loans fund for his trainer business, The Sole Guyy. The capital will fuel growth through enhanced marketing, increased stock, and part-time support as the company scales.
Mr Usher stated: "Partnering with NEL has been extremely positive. The team genuinely grasped my business and my ambitions. This investment is the platform to boost sales, reach more customers, and meaningfully expand as demand increases."
Confidence for Continued Growth in 2026
James Katirai, head of investments at NEL Fund Managers, reflected on the year: "2025 has been a record year for NEL. Completing 34 investments for a diverse range of growing SMEs, from multi-million-pound buyouts to startup restaurants, demonstrates our flexible funding range of £25,000 to £2 million. We are proud to support entrepreneurs from Berwick down to Teesside on their growth journeys."
Sarah Newbould, senior investment manager at British Business Bank, which oversees the NPIF, added: "These investments showcase the ambitious businesses being supported across the North East. It has been an incredibly strong year for the fund, where our fund managers are pivotal. By providing finance at critical growth stages, they help businesses scale, create jobs, and strengthen local economies."
With an excellent performance over the past 12 months, NEL Fund Managers has signalled it is ready to support as many businesses as possible as it moves into 2026.
