One North East announces England's first 'super fund' set for January launch

2009-12-15
Member News

Hundreds of businesses in the North East will benefit from a £125m ‘super fund’ from January 2010

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One North East announces England's first 'super fund' set for January launch
Hundreds of businesses in the North East will benefit from a £125m ‘super fund’ from January 2010.
One North East has today unveiled five fund managers as the preferred suppliers for delivering investments into 850 small and medium-sized firms over the next five years.

These management companies will target loans and equity investments into business start-ups, technology-based companies and growing smaller businesses, helping to create jobs and prosperity for the region.

The JEREMIE venture capital fund (Joint European Resources for Micro to Medium Enterprises Initiative), is the first fund of its type in England. It will be open for business from January 4th and will be formally unveiled at a launch event on January 22nd.

But to ensure the fund is ready to deal with businesses immediately it goes live - companies interested in accessing JEREMIE finance can register their details now at www.onenortheast.co.uk/jeremie allowing financial experts from the fund managers to contact them as soon as the fund goes live.

Regional Economic Development Minister Rosie Winterton MP said: “This is wonderful news for the North East.

“Difficult economic times have had a significant impact on people and businesses, here and across the UK. This fund and the recently announced £60m Government support package will help the North East create new jobs, develop new skills and ensure long-term economic prosperity.”

The North East JEREMIE will be jointly funded by the European Investment Bank, which will contribute £62.5m with the European Regional Development Fund 2007-13 and One North East jointly investing a further £62.5m.

The fund management firms leading the six funds - subject to final contract signing - that will comprise JEREMIE are:
• NorthStar Equity Investors, an active early stage fund management company established in Newcastle since 2004, who will manage the £15m Technology Proof of Concept Fund and the £20m Seed Fund.
• IP Group, which operates on a nationwide basis, who will run the £25m Technology Fund from offices in Newcastle.
• Rivers Capital Partners – a new joint venture between leading technology investment firm E-Synergy and local business advisors Finance Tree of Newcastle - who will manage the £7.5m Angel Match Fund.
• Finance Wales Investments, a specialist in regional investment, who will manage the £20m Growth Fund 500 through their new North East office.
• NEL Fund Managers, of Newcastle, who will run the £20m Growth Fund.

The investments available to firms across the suite of funds range from £20,000 to £1.25m.
The total funds under management are £107.5m. The remaining £17.5m will allow flexibility to top up the existing funds in response to business demand, with some of the finance earmarked for a possible micro finance fund which is currently under discussion.
Malcolm Page, One North East Deputy Chief Executive, said: “Our JEREMIE fund is the first fund of its type in England and will help underpin a new generation of high growth small and medium-sized businesses in the region, potentially supporting more than 5,000 jobs.
“We have appointed a team of fund mangers with proven track records of managing and delivering high profile equity and loan investments.
“We are very excited at the potential these funds have to make a real difference to businesses right across the North East, especially at a time of recession.

“The JEREMIE fund will help firms consolidate and plan ahead with increased confidence to take full advantage of the economic upturn when it arrives.”
Nick Brown MP, Minister for the North East, said: “I am a big supporter of this initiative. It will provide North East businesses with the credit to help enable economic growth and have a positive impact on the region’s employment base.”

Andrew Mitchell, Chief Executive of North East Finance which will manage the JEREMIE holding fund, said: “North East Finance is very much looking forward to delivering JEREMIE on behalf of One North East, the European Investment Bank and the European Regional Development Fund 2007-13.
“This is a significant ‘win’ for the region and will help to secure access to investment for growing regional businesses over the next decade and beyond.

“These new investment funds will provide a vital boost for both new companies in the North East as well as those existing businesses looking to achieve their full potential.”

Simon Brooks, Vice President of the European Investment Bank, said: “The JEREMIE fund represents the beginning of a new era in venture capital investment in North East England.
“We have worked closely with One North East and the EU to develop and back this innovative fund, which we believe can provide a major boost to the regional economy by stimulating the development of a new generation of businesses which will help lead forward economic growth.”

The ERDF 2007-13 programme is bringing over £300m into North East England to support innovation, enterprise and business support. It will help create and safeguard 28,000 new jobs, start 3,000 new businesses and increase the region’s productivity by £1.1bn per annum.