Invest NI commits £29.2m debt finance to Investment Fund for Northern Ireland
Invest NI has committed £29.2m to increasing available debt financing in the Investment Fund for Northern Ireland.
The British Business Bank launched the £70m investment fund two years ago, and it has since invested £30m into local firms.
Those investments in smaller businesses at different stages of growth have crowded in co-investment of around £45m, bringing total investment to over £75m.
The fund offers commercial finance options including debt finance and equity investment to support business from all sectors in Northern Ireland.
Whiterock manages the IFNI debt fund, offering loans of £25,000 up to £2m, while Clarendon Fund Managers provides equity stakes in smaller businesses up to £5m.
“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 I am committed to supporting their formation and growth," said Northern Ireland's Minister for the Economy Dr Caoimhe Archibald.
“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 further 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 of the British Business Bank, said the fund is playing a key role in increasing the supply and diversity of finance in the North.
“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," he continued.
“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 at Invest NI, said: “We have invested alongside British Business Bank for seven years and are pleased to be able to provide an additional £29.2m into the Investment Fund for Northern Ireland.
"As this fund is able to provide loans of up to £2m it has real potential to have a positive impact on local businesses with ambitious growth plans.
“The success of our Access to Finance Programme has shown a need for us to provide debt and equity funds to address a gap in the market.
"These funds are providing finance to start-ups and SMEs at the early stage of business development, as well as more established SMEs embarking on a growth journey, when it can be hard to access funding from traditional sources.”
Photo: (l-r) George McKinney, interim Chief Development Officer, Invest NI, Louis Taylor, Chief Executive British Business Bank and Mark Sterritt, British Business Bank Director Regions and Nations Investment Funds. (Pic: Supplied)
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