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Back to Northern Powerhouse Investment Fund News – Issue 16

Q&A with Grant Peggie, Director at the British Business Bank

As Grant Peggie steps down from his role at the British Business Bank after seven years, he shares thoughts on the Northern Powerhouse Investment Fund – a Fund he has been involved with since its launch five years ago.

1. What do you think has been NPIF’s biggest achievement?

I am proud of the way that the Bank, our partners in the Combined Authorities and LEPs along with our Fund Managers have come together to support small growing businesses across the North. This was particularly evident during the COVID pandemic where we were able to provide businesses with the investment they urgently required. The challenges facing businesses across the North may have changed, but our fund managers are continuing to provide support during these uncertain economic times.

2. Which NPIF investments are most memorable to you, and why?

I am always amazed by the diversity of the NPIF portfolio. This includes support for the smallest businesses through the Microfinance funds; traditional manufacturing and family businesses through the debts funds; and the innovative cutting edge companies in the life sciences and digital sectors receiving investment from the equity funds.

3. Which areas do you think have been impacted most by NPIF ?  How important do you think NPIF has been to supporting businesses outside of the major city regions?

I am so proud that companies in all of the local authority districts within the NPIF area have received investment. While the Funds were always likely to perform strongly in our major northern cities, I am pleased that we have also provided support to our towns, rural and coastal areas reflecting the strength and diversity of northern businesses.

We know that growth and innovation occurs across all areas of the North with our world class universities and innovation infrastructure. It is important that NPIF can provide important investment to companies irrespective of their geographical location and I frequently mention that over 68% NPIF investment has gone to areas outside of Liverpool, Leeds, Sheffield and Manchester.

4. What learnings can be taken from NPIF ?

1. NPIF has set an important benchmark for successor funds. Key lessons I would flag are:

2. The importance of collaboration with the Combined Authorities & LEPs, fund managers, the business community and the Bank to agree and address market gaps in the provision of finance across the North

3. The necessity to be flexible and agile to respond to changing economic circumstances – NPIF demonstrated this agility in how it responded to the pandemic.

4. A part of NPIF’s success is the physical presence across the North with the Bank and fund managers being close to the business community and an important part of the ecosystem.

5. The recent independent NPIF evaluation that identified that the Fund was doing well in supporting businesses who are reducing their carbon footprint. However, even more needs to be done to support the North’s small businesses if the UK is to meet our Net Zero targets.

6. NPIF has had success in supporting female and ethnic minority entrepreneurs. However, I think that there needs to an even greater focus going forward to ensure that access to investment is available to all of our communities across the North.

6. How important do you think NPIF has been to building a Stronger North?

NPIF is an important part of the Government’s Northern Powerhouse strategy, providing support to growing businesses across the North. It has supported over £800 million of investment from both the public and private sector and supported the creation of over 6,000 new jobs. The success of NPIF has resulted in the Government committing over £660m of new investment for a successor fund which will build on NPIF’s success from the end of 2023.

Final Thoughts

After 7 years working on NPIF I have taken the decision to step down from the British Business Bank. I am proud of what NPIF has achieved despite the challenges faced during the Pandemic. I would like to take this opportunity to thank our Fund Managers for their commitment, our partners in the Combined Authorities and the LEPs for their support and small businesses for the resilience they have shown during these unprecedented times. However, NPIF is still very much alive and investing and I leave the Fund in safe hands with colleagues at the British Business Bank.

The  Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.

Editors Notes