Northern Powerhouse Investment Fund

The Northern Powerhouse Investment Fund (NPIF) is a significant regional investment fund in the United Kingdom, managed by the British Business Bank. Launched in 2017 with an initial £400 million, its primary objective is to address market failures and provide access to finance for small and medium-sized businesses (SMEs) across the North of England, encompassing the North West, Yorkshire and the Humber, and the North East. NPIF aims to drive economic growth, foster innovation, and create jobs by supporting businesses that might otherwise struggle to secure conventional funding.

NPIF offers a comprehensive suite of commercial finance products tailored to different stages of business growth. These include Microfinance, designed for smaller funding needs, Debt Finance for established businesses seeking growth capital, and Equity Finance for high-growth potential companies. The fund operates through a network of fund managers, ensuring localized expertise and support for businesses within the region. This multi-product approach allows NPIF to cater to a broad spectrum of companies, from startups requiring initial capital to more mature firms looking to scale operations.

The fund has demonstrated substantial impact since its inception. As of March 2024, NPIF had delivered over £1 billion of investment directly into Northern businesses, a testament to its scale and reach. This direct investment has also been highly effective in leveraging private sector capital, attracting an additional £1.6 billion in co-investment. This significant co-investment highlights NPIF's role in de-risking opportunities and stimulating broader private sector participation in the Northern economy. In 2023, the British Business Bank launched NPIF II, a successor fund providing an additional £660 million to continue supporting Northern businesses, underscoring the ongoing commitment to regional economic development.