How new fund can spell success for SMEs
NEWS
How new fund can spell success for SMEs
PAVING THE WAY TO
Small and medium-sized enterprises ( SMEs ) are the lifeblood of our economy , accounting for 99.2 per cent of the UK ’ s business population .*
It is crucial that we invest in their success . We ’ re stepping up our commitment to Teesside SMEs with the launch of a new £ 20m fund that aims to tackle identified funding gaps in the region .
We have a strong record of investing in the North-East and since 2013 , we ’ ve put close to £ 38m into 62 companies in Teesside alone .
Through the Teesside Flexible Investment Fund , we will build on this track record and aim to provide total investment in the region of £ 68m , with money from repayments and exits being recycled into new deals .
Designed by FW Capital with investment from the Teesside Pension Fund , the fund will support economic development in Hartlepool , Middlesbrough , Stockton-on- Tees and Redcar & Cleveland through a mix of property development funding , contract-related bond finance and finance to support management teams in buying a business .
There ’ s lots going on in the Teesside area , with exciting plans for regeneration , and this new fund will unlock much-needed finance for SMEs and provide valuable investment for the future .
We ’ ve seen first-hand how important it is to have the right backing and created a fund that supports a variety of needs to match the diversity we are seeing across
94 | Tees Business
Backing – FW Capital ’ s Lindsey McMenamin , Lewis Blakelock , Keith Charlton , Jo Whitfield and Tony Cullen , with Cllr Julia Rostron , third from left , chair of the Teesside Pension Fund Committee .
Joanne Whitfield , fund director at FW Capital ,
PROSPERITY talks about an exciting new source of support for Teesside businesses . the region .
Businesses know us for providing property development funding and bond finance in the North-East and we ’ re excited to expand our offering into supporting management teams looking to buy a business . Assisting the transition of business ownership safeguards this legacy for the future .
The fund will build on the success of our previous investment activities in the region and aims to make a significant economic impact on Teesside by providing local businesses with investment ranging from £ 100,000 to £ 3m .
In providing this much-needed alternative finance we aim to drive more opportunities and remove barriers for growth to local businesses , resulting in job creation and economic prosperity . We ’ re inviting businesses to contact us to discuss how we can assist them .
The new fund follows the success of the Tees Valley Catalyst Fund , which FW Capital ran on behalf of the Tees Valley Combined Authority and ended in 2023 .
This provided bond finance , facilitating contracts of £ 78m across Teesside . The new fund will also allow FW Capital to support property developers in Teesside , using its experience in funding residential and non-speculative commercial developments in other areas of the North- East .
Cllr Julia Rostron , chair of the Teesside Pension Fund Committee , says : “ FW Capital has been investing in local business and enterprise for over a decade , and has played a key role in supporting growth and generating prosperity .
“ The new Flexible Investment Fund in partnership with the Teesside Pension Fund will build on that work with SMEs , delivering much-needed new opportunities for further growth and the creation of high-quality , sustainable jobs .”
The Teesside Flexible Investment Fund can be used for : > Loans from £ 250,000 to £ 3m for residential and non-speculative commercial developments , providing up to 100 per cent of build costs for suitable schemes with repayment terms of up to three years available .
> Loans from £ 100,000 to £ 2m for contract-related bonds , including advance payment guarantees , performance , warranty , highways and water authority bonds . Repayment terms of up to two years are available .
> Loans and equity investments from £ 250,000 to £ 3m for management teams seeking to own and run their own business . Investments are available between one and five years .
To find out how FW Capital can support your business , call 0191 269 6969 , email info @ fwcapital . co . uk or visit fwcapital . co . uk .
Source UK Small Business Statistics 2024 – Start-Ups and FSB