The British Business Bank announced that in the two years since its launch the £70million Investment Fund for Northern Ireland has directly invested £30million into local firms. Additionally, these new investments into smaller businesses on differing stages of their growth journey have “crowded in co-investment of around £45M, bringing the total investment level to over £75M.”
The reported success of the Investment Fund for Northern Ireland is now being bolstered “as Economy Minister Dr Caoimhe Archibald announces that Invest NI is committing £29.2million to increase available debt financing in the fund.”
The fund offers a range of commercial finance options “including debt finance and equity investment to support businesses from all sectors in Northern Ireland.”
Whiterock manages the IFNI debt fund, “offering loans of £25,000 up to £2million, while Clarendon Fund Managers provide equity stakes in smaller businesses up to £5million.”
Dr Caoimhe Archibald, Minister for the Economy said that access to finance is a crucial issue for many small and medium enterprises.
They are the backbone of our economy, “delivering jobs and prosperity across the north and they are committed to supporting their formation and growth.”
This Fund is the fourth fund in Invest NI’s Access to Finance portfolio.
The commitment of a further “£29.2m from Invest NI means there is now a total of £280m available for investment in micro businesses and SMEs across four funds.”
This investment from Invest NI will build on the success of this fund.
This funding is much needed to “support early-stage businesses and growing SMEs to have the best chance of success.”
Mark Sterritt, Senior Director, British Business Bank, said that the Investment Fund for Northern Ireland is playing a key role in “increasing the supply and diversity of finance in every corner of the country.”
To date, the fund has seen great success supporting “some of Northern Ireland’s most innovative and entrepreneurial businesses with both debt and equity investments to help them on their growth journeys.”
The additional funding from Invest NI is particularly welcome and with a strong pipeline of deals to come this finance will “help the debt fund specifically as we continue supporting smaller businesses.”
George McKinney, interim Chief Development Officer, Invest NI, said that they have invested alongside British Business Bank for seven years and are pleased to be able to provide “an additional £29.2million into the Investment Fund for Northern Ireland.”
As this fund is able to provide loans of up “to £2million it has real potential to have a positive impact on local businesses with ambitious growth plans.”
One of the businesses to benefit from Debt finance from the Investment Fund for Northern Ireland is “a high-quality fastener and fixing solutions company, Profast Group, which has worked on some of Northern Ireland’s most iconic landmarks such as Titanic Belfast and The Rise sculpture, received a £500,000 loan.”
The investment enabled three of the company’s senior employees, Stephen Clarke, Jonathan Aiken and Craig Milne to “acquire the group from existing shareholders and become the biggest distributor of its kind on the island.”
Operated by the British Business Bank, the Investment Fund for Northern Ireland (IFNI) provides “a mix of debt and equity funding.”
IFNI will offer a range of commercial finance options with “debt finance from £25k to £2m and equity investment up to £5 million.”
It works alongside the support and funding organisations from across Northern Ireland as well as local intermediaries “such as accountants, fund managers and banks, to support Northern Ireland’s smaller businesses at all stages of their development.”
The funds in which the IFNI invests are open to businesses “with material operations, or planning to open material operations, in all areas of Northern Ireland.”
Invest Northern Ireland works with individuals, companies and organisations in manufacturing and tradable services which show the “commitment to grow by being more innovative, more entrepreneurial and more internationally focused.”
Invest NI’s resources are said to be focused on assisting clients “to improve competitiveness, increase innovation, promote a stronger international focus and create positive attitudes to enterprise.”
Invest NI’s range of support and services are reportedly delivered “through local offices in Belfast, Ballymena, Craigavon, Londonderry, Newry, and Omagh, and an international office network.”