North East Finance (formerly NStar) is responsible for the development of a range of innovative access to finance initiatives across North East England. Our primary role is to put in place venture capital, mezzanine and loan funds, targeted at high-growth small and medium-sized companies seeking investment finance.

Acting as a specialist advisor to the regional development agency for North East England (One NorthEast) we work with a range of public and private sector investors to create funds which focus on the sub-£2m equity ‘gap’ facing many ambitious entrepreneurs and businesses in the region.

Over the next 18 months, we will be putting in place a £100m plus strategic holding fund, financed with investment from major European public and private sector institutions. The holding fund will, in turn, invest in a suite of specialist funds focussing on specific sectors and business funding needs.

The management of the individual funds will be contracted to experienced FSA-regulated venture capital and private equity firms, selected through an open procurement process. Individual investments will be made on the basis of achieving the best possible returns through backing high growth businesses across the North East.

We  will build on a successful track record of structuring venture capital and loan funds in the region over almost 10 years. Since 2001, our regional funds have invested over £50m in 400 businesses in the region, leveraging over £60m in matching finance from a range of private sector investors, including leading international venture capital firms, business angels and banking institutions.