Northern Powerhouse Investment Fund II (NPIF II) has reached a significant milestone, directly investing £115m into over 300 small businesses across the North of England. This has been achieved alongside an additional £68m of private sector co-investment, bringing the total delivery of the fund to over £180m. NPIF II, which was launched in 2025, has now completed over 315 deals to date.
Managed by the NPIF II fund managers, these investments have played a crucial role in driving sustainable economic growth by supporting innovation and local opportunities for new and growing businesses across the North. The Fund has provided support to a diverse range of business sectors, including advanced manufacturing, digital and technology businesses, and the creative industries, in line with the Government’s eight priority key sectors.
Operated by the British Business Bank, NPIF II is a £660m fund that offers loans and equity finance options for Northern smaller businesses that may not have access to traditional forms of investment. The purpose of NPIF II is to break down barriers to finance by providing loans from £25k to £2m and equity investment up to £5m for start-ups, scale-ups, and businesses looking to stay ahead.
Since its launch, NPIF II has successfully completed deals with some of the most exciting business founders in the region, providing them with the necessary funding to unlock growth and new opportunities.
In the North West, investment from NPIF II – River Capital & GC Business Finance Smaller Loans has enabled the director and founder of Moxie Financials, Sian How, to expand its team with essential working capital. This accountancy and tax specialist firm based in Preston will be creating four new roles, freeing up Sian’s time to focus on business development and client acquisition. Moving beyond the start-up phase, Moxie Financials is targeting the legal sector and will use the funding to boost its marketing capabilities.
In Sheffield, leading independent bridge engineering specialist EKSPAN secured £1.4m in debt funding from NPIF II – Mercia Debt Finance to support its further growth. The company, established over 30 years ago, previously operated as part of larger corporates, most recently the USL Group. It has been involved in delivering some of the UK’s most high-profile bridge infrastructure projects and with the funding, aims to expand its capabilities even further, with the goal of increasing turnover by 50 per cent in the next three years.
In the North East, Magnitude Biosciences, a specialist contract research organisation offering in vivo discovery treatments for age-related conditions and other diseases, is another business to secure investment from NPIF II. Based in County Durham and led by Dr Fozia Saleem, it received £700,000 in a funding round led by NPIF II – Maven Equity Finance to scale up its high-throughput screening platform, which will be able to screen thousands of compounds a week. The business is at the forefront of drug discovery and, based in NETPark, is a key player in the North East’s growing hub for digital and life science innovation.
Adam Kelly, co-managing director of Funds at the British Business Bank, said: “The Northern Powerhouse Investment Fund II plays a vital role in increasing the supply of funding available to small businesses in the North of England. Whether it’s deep in the Northumberland countryside or the heart of a vibrant city like Leeds, NPIF II is delivering early-stage finance to businesses operating across a host of sectors. With over £180m directly invested so far, over 300 businesses will be feeling the direct benefits of what access to finance can help achieve. This milestone is a sign of more to come, and we expect a greater number of entrepreneurs to get engaged and access the funds they need to take their business to the next level.”
The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunities for new and growing businesses across the North. The Fund 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 to access finance.
Press contact:
Will Holroyd, MC2
WillH@thisismc2.com
0161 236 1352
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 offers a range of commercial finance options, including 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
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.