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NPIF II surpasses £80m of investment in first year since launch

Press release 15 April 2025

In its first year since launching, the Northern Powerhouse Investment Fund II (NPIF II) has successfully completed over 200 investments into small businesses across the North of England, totalling over £80m. 

a group of people standing with pedal rackets in a court

The investments, delivered by the NPIF II fund managers, have assisted in driving sustainable economic growth by supporting innovation and local opportunities for new and growing businesses across the North.

Operated by the British Business Bank, NPIF II is a £660m fund that provides loans and equity finance options for Northern smaller businesses that might otherwise not receive investment. The purpose of NPIF II is to break down barriers in access to finance by providing loans from £25k to £2m and equity investment up to £5m to start up, scale up, and stay ahead.

Building on the success of the first Northern Powerhouse Investment Fund which launched in 2017, NPIF II was extended to encompass the entirety of the North of England by extending its reach to cover the whole of the North East.

In its first year in operation, NPIF II has delivered investment to a range of smaller businesses, supporting them in achieving their growth objectives. 

In the North East, NPIF II has played a pivotal role in fuelling the North East’s tech scene. Newcastle-based fintech specialist, Kani Payments (Kani), received multi-million-pound investment from NPIF II - Maven Equity Finance alongside Maven VCTs. This funding has been instrumental in propelling Kani into its next phase of growth, enabling the company to develop its highly scalable platform, grow its team, and expand internationally.

In Yorkshire, Claro Hill Vets, an independent veterinary practice, received a £90,000 loan from NPIF II – BEF Smaller Loans to secure transformational working capital to safeguard seven existing roles, while creating four new jobs in the process. Launched by Laura Keyser in 2024, the funding also provided stability to the practice, which gave it the security to successfully reach its target of £500,000 in turnover in its first year.

Taking advantage of the fast-growing racquet game, The Padel Club raised £1.5m in funding from NPIF II – Praetura Equity Finance in one of the first deals for NPIF II in the North West. The deal helped supercharge its growth plans which has led to the opening of its new site in TraffordCity last month, which will be home to 11 courts. 

Portrait of Laura Keyser and Mark Iley
image of kani payments team sitting together

Commenting on the one-year milestone, Adam Kelly, Managing Director, Co-Head of Funds at the British Business Bank, said:

Our focus has always been towards helping smaller businesses achieve their ambitions by gaining transformational access to finance. From padel courts to an independent vets, the Northern Powerhouse Investment Fund II has done exactly that by empowering local business leaders and entrepreneurs to grow their organisations.

In its first year, over £80m invested into the Northern economy is a fantastic feat, and we’re proud to have supported businesses at the forefront of innovation, or building the modern, green economy, and those led by underrepresented founders. This is only the first year of NPIF II and there are still so many great businesses out there looking for investment.

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. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for Northern 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.
  • Supported by Nations and Regions Investments Limited, a subsidiary of British Business Bank plc, the Bank is a development bank wholly owned by HM Government. Neither Nations and Regions Investments Limited nor British Business Bank plc are authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA).
  • 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  – Praetura 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 northernpowerhouseinvestment fund.co.uk.  

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