£70m investment fund for Northern Ireland to launch this autumn
Smaller businesses in Northern Ireland are set to benefit from a new £70m investment fund, due to be launched by the British Business Bank this autumn.
The state development bank is inviting proposals from potential fund managers to operate the new fund, which is part of its Nations and Regions Investment Funds initiative to deliver £1.6bn to smaller firms across the UK.
The Investment Fund for Northern Ireland will offer a range of commercial finance options, with loans from £25,000 to £2m and equity investment of up to £5m.
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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.
The British Business Bank has already set up funds working with 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.
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“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,” said Ken Cooper, managing director, venture solutions, at the British Business Bank.
“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.”
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 this summer ahead of the launch.
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