British Business Bank is exploring investments in the private equity space through a new £60m commitment to NorthEdge IV.
As part of the government-owned development bank’s new growth equity strategy it has been mandated to invest in private equity funds focused on backing smaller businesses.
The mandate was given to the bank as part of the government’s ambition to drive economic growth through higher-risk and high-growth investments.
NorthEdge is a Manchester-based private equity firm established in 2009. The group focuses on backing businesses in the lower to mid-market and has so far invested over £780m across 49 companies via four regionally-focused funds.
The group’s Fund IV will see NorthEdge invest in more founder-led businesses and SMEs across the UK’s nations and regions.
In particular it will focus on technology, healthcare and business services sectors with investments of £8m-£50m for controlling or significant minority equity stakes.
“We are pulling every lever to boost growth – making record investment in our infrastructure and public services, unlocking opportunities for companies through major trade deals, and supporting innovative businesses to start, scale and stay in Britain through our modern Industrial Strategy,” said Chancellor Rachel Reeves.
“This major commitment from the British Business Bank to NorthEdge will drive even more growth – unlocking millions of pounds of investment for smaller UK businesses to expand, create new jobs, and keep our country at the cutting edge of frontier tech, life sciences and business services.”
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