EU-backed £185m North West Fund officially launched at “critical” time for region

11 February 2011

• The North West Fund opened for online applications on 20th December 2010
• Largest European Investment Bank fund for small companies provided to any
UK region
• By the end of January 2011, more than 300 enquiries or applications for
funding had been received via the Fund’s website
• 150 enquiries or applications are now under active review by the six fund
managers
• Four investments have been completed to date
• Fund managers are now finalising their investment and support teams,
identifying and opening offices and relocating personnel into the North West
as their operations get into full swing

The North West Fund received more than 300 enquiries or applications for funding in its first six weeks of operation, according to the CEO of Northwest Business Finance Limited (NWBF), Andy Leach.

The £185m funding provided by the European Investment Bank (EIB) and European Regional Development Fund (ERDF) is available for companies based in, or relocating to, the North West, with a maximum amount of £2m per firm.

The lending programme is the largest in the UK, following smaller schemes in the North East, Yorkshire and Wales.

Of the enquiries made between 20th December 2010 and 31st January 2011 via The North West Fund’s website, half are now under active review by the Fund’s six fund managers, with four investments having been successfully completed.

These are among the messages that will be outlined at ACC Liverpool today at a half-day event organised to mark the official launch of The North West Fund.

The event will provide an opportunity for stakeholders, business leaders and
professionals to find out more about the £185m evergreen Fund and to meet the fund managers responsible for investing the capital in the region over the coming years.

Speaking or taking part in panel discussions at the launch will be:

• CEO of NWBF, Andy Leach
• Chairman of the NWDA, Robert Hough
• Head of Unit for Regional Operations in the UK and Ireland at the
European Commission, Agnes Lindemans
• Vice president of the EIB, Simon Brooks
• Head of business finance at the NWDA, David Read
• Director of European Programme at the NWDA, David Malpass
• Chairman of NWBF, Lord Daresbury
• Chairman of the investment advisory panel to The North West Fund, John
McGuire
• Founder of La Tasca Restaurants, Neil Gatt

Andy Leach, chief executive of NWBF, the private, not-for-profit company
established to oversee the delivery of The North West Fund, said: “I am
genuinely delighted with the progress made since The North West Fund opened for business in December 2010. It is testament to the commitment of the six fund managers selected to invest the Fund, coupled with a clear market need, that we have already succeeded in completing four investments. We anticipate that each of our six sub-funds will have completed its first investment by the end of March 2011.

“The level of demand that we have witnessed in these few short weeks
highlights the importance and critical timing of this Fund in supporting SME
growth, generating employment, contributing to regional prosperity as we
emerge from recession, and creating an enduring financial legacy for the North West. Having worked closely with the six fund managers during this period, I am confident that we have selected well, and I look forward to continuing to work with them in the same collaborative vein as we have to date.”

Chairman of the NWDA, Robert Hough, said: “It gives me great pleasure to be involved in the launch of The North West Fund, which is the largest public sector fund of its kind in the UK and one of the largest in Europe. The NWDA has worked hard to secure this vital fund for the region, which will improve the economic performance of England’s North West with an estimated GVA increase of £250m by 2015.

“Over the past three years, the NWDA has played a major role to support a
fragile economy, offering a range of financial support to small and medium sized businesses to nurture innovation and growth to aid recovery. With smaller companies still struggling to access business finance, and with credit coming at a price, The North West Fund will pick up the baton for the region, ensuring those businesses with the drive and ambition to create jobs and aid economic growth are able to succeed.”

Head of Unit for Regional Operations in the UK and Ireland at the European Commission, Agnes Lindemans, said: “The Commission welcomes the launch of The North West Fund, which is the largest JEREMIE undertaking in the UK. This fund will bring tangible proof that European assistance can be of real and sustainable value to the SME community in this region.”

EIB vice president responsible for the United Kingdom, Simon Brooks, said:

“The North West Fund will make a key contribution to the business environment for smaller companies, which are crucial for underpinning economic growth and jobs. Combining EU grants and EIB loans increases The North West Fund’s support for entrepreneurs in the region, creating new companies and expanding existing ones. Encouraging SMEs lies at the heart of the EIB’s activities and European initiatives to encourage economic recovery using local experience and expertise, and I am delighted that the EIB has been able to support this initiative.”

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