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NPIF II strikes first deal in Yorkshire with leading ‘free from’ food brand

Press release 15 July 2024

The Northern Powerhouse Investment Fund II (NPIF II) has completed its first investment in the Yorkshire and Humber region since the launch of the £660m fund in March this year.

Based in Harrogate, Kirsty’s, the UK’s leading ‘free from’ range of ready meals, has raised £2m from NPIF II – Mercia Equity Finance, which is managed by Mercia and part of the Northern Powerhouse Investment Fund II.

Building on the first Northern Powerhouse Investment Fund, businesses across the North can now access up to £5m in equity finance with NPIF II to start up, scale up or continue on their growth journey.

With the funding from NPIF II, Kirsty’s will be able to launch new ‘food to go’ ranges and develop other new products. The investment, which is the first from NPIF II, is expected to add 15 new jobs to its 55-strong team in the next six months at the company’s Harrogate factory. As part of the deal Ian Kent, the former Commercial Director of Stateside Foods, has been appointed as Chair.

Created and launched by Kirsty Henshaw, Kirsty’s was founded in 2009 after discovering that her son Jacob had multiple food allergies, including to nuts, as well as dairy intolerance. With so few healthy and tasty food options available to her, she began experimenting with different recipes and started selling small batches of ice cream to health food stores. Gaining in popularity and receiving interest from major retailers such as Tesco, she took her business to Dragon’s Den in 2010. After successfully securing backing from Peter Jones and Duncan Bannatyne, Kirsty subsequently bought back their shares three years later after launching her meals into supermarkets across the country in 2012.

In 2020, Kirsty’s opened a state-of-the-art 100 per cent allergen-free factory in Harrogate bringing all its manufacturing operations in-house.

Kirsty’s ‘healthy’ ready meals are low in calories and free of allergens such as nuts, dairy, gluten and wheat. The company supplies all the major supermarkets and operates the only allergen-free factory of its size in the UK. 

Nothing beats fresh, home cooked food, however with modern life being busier than ever, we know that’s not always achievable, especially for those with allergies who have to prepare everything from scratch. We set out to create a range of healthy, convenience foods that everyone could enjoy whether they have an allergy or not.

Our success is a real testament to our hard-working team. This funding will enable us to take the business to a new level and fulfil its true potential.

Kirsty Henshaw Founder of Kirsty’s
Kirsty is an incredible founder with a deep passion, an unstoppable drive and infectious personality. She has built a strong brand, a great team and a defensible platform for future growth. As our population becomes more aware of what they consume, and with busy lives and more dual income households, Kirsty’s is poised to truly lead the healthy convenience and allergen-free sectors. With strong relationships with all the major UK retailers and a roadmap of exciting new products, we are excited about the growth journey ahead. Chris Borrett Mercia Ventures
Like so many of the UK’s entrepreneurs Kirsty has a dedication to making her business a success. For 15 years consumers have sought out her product, and now with an injection of the right kind of finance she will be able to grow that market. In the current environment sectors such as manufacturing can find it increasingly difficult to remain competitive and attract funding. This investment shows that the Northern Powerhouse Investment Fund II is open for business and available to support ambitious businesses across the North. Ken Cooper Managing Director, British Business Bank

The £660m Northern Powerhouse Investment Fund II (NPIFII) covers the entire North of England and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.

The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North of England. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for the North’s smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.

Further Information

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Notes to editors

About the Northern Powerhouse Investment Fund II


Operated by the British Business Bank, the Northern Powerhouse Investment Fund II (NPIF II) provides a mix of debt and equity funding.  NPIF II will offer a range of commercial finance options with smaller loans from £25k to £100k, debt finance from £100k to £2m and equity investment up to £5 million. It works alongside the Combined Authorities, Local Enterprise Partnerships (LEPs), and Growth Hubs, as well as local intermediaries such as accountants, fund managers and banks, to support the North’s smaller businesses at all stages of their development. 


The funds in which the NPIF II invests are open to businesses with material operations, or planning to open material operations, in: Cheshire, Cumbria, Greater Manchester, Lancashire, Merseyside, City of Kingston upon Hull, East Riding of Yorkshire, North Yorkshire, South Yorkshire, West Yorkshire, Hartlepool and Stockton-on-Tees, South Teesside, Darlington, Durham, Northumberland, Tyneside, Sunderland. 


For investment by NRIL at the sub-fund level
The investment from the Nations and Regions Investments Limited into [.] does not amount to any endorsement or warranty from Nations and Regions Investments Limited, the British Business Bank plc or the government of the United Kingdom.

For investment by NPIF II sub-fund at the investee company level
The investment from the Northern Powerhouse Investment Fund II into [.] does not amount to any endorsement or warranty from Nations and Regions Investments Limited, the British Business Bank plc or the government of the United Kingdom.
Smaller Loans from £25,000 to £100,000 – GC Business Finance & River Capital (North West), Business Enterprise Fund (BEF) (Yorkshire and Humber) and NEL Fund Managers (North East)

Business Loans from £100,000 to £2m – FW Capital (North West), Mercia (Yorkshire and Humber) and NEL Fund Managers (North East)

Equity Finance up to £5m  – Prateura Ventures (North West), Mercia (Yorkshire and Humber), and Maven Capital Partners (North East)

Applications for funding are made directly to the relevant fund managers who can be contacted via the NPIF II webpages www.northernpowerhouseinvestment fund.co.uk

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