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British Business Bank makes £60m commitment to NorthEdge IV as part of new Growth Equity strategy

Press release 19 February 2026

Today, the British Business Bank has announced a new cornerstone commitment of £60m to NorthEdge IV, made under the Bank’s new Growth Equity strategy. 

Under this new mandate, the British Business Bank will be able to invest into private equity funds focused on backing smaller businesses. The Growth Equity strategy will invest on a fully commercial basis across generalist and thematic strategies, with a focus on funds that are aligned with the eight growth-driving sectors of the Government’s modern Industrial Strategy. The mandate will unlock scale-up capital and expertise for smaller businesses, particularly for those in the UK’s Nations and regions.

With limited UK-based institutional capital historically allocated to the asset class, particularly in the lower mid-market, this new mandate will enable the Bank to make targeted investments into these funds; crowd in additional private capital; and ensure that the most promising UK smaller businesses have the finance they need to scale and stay in the UK. 

NorthEdge is a well-established regional private equity firm headquartered in Manchester with a focus on backing businesses in the lower mid-market. To date, it has invested over £780m into 49 companies from four regionally-focused funds. In 2024, its portfolio contributed £656m of Gross Value Added (GVA) to the UK economy and supported almost 10,000 jobs, with around 70% of its impact generated in the UK Nations and regions outside of London and the South East.

Fund IV enables NorthEdge to invest in more founder-led businesses and SMEs across the UK’s Nations and regions. The Fund will focus on the Technology, Healthcare and Business Services sectors, making investments of £8m-£50m for controlling or significant minority equity stakes to accelerate the scaling of portfolio businesses. The fund will also utilise co-investments to fund larger deals and follow-on investments. As a cornerstone investor, the British Business Bank will have the opportunity to participate in co-investments alongside the fund.

Chancellor of the Exchequer, Rachel Reeves, said:

We are pulling every lever to boost growth – making record investment in our infrastructure and public services, unlocking opportunities for companies through major trade deals, and supporting innovative businesses to start, scale and stay in Britain through our modern Industrial Strategy.

This major commitment from the British Business Bank to NorthEdge will drive even more growth – unlocking millions of pounds of investment for smaller UK businesses to expand, create new jobs, and keep our country at the cutting edge of frontier tech, life sciences and business services.

Adam Kelly, Managing Director and Co-Head of Funds, British Business Bank said:

Scaling up smaller businesses in the UK’s Nations and regions is key to achieving the government’s growth mission. Under this new Growth Equity strategy, we can back more innovative businesses and crowd in further private capital. We are pleased to make this £60m commitment to NorthEdge under the strategy, backing UK businesses with the finance they need to scale and stay in the UK.

Lucie Mills, Partner, NorthEdge said: 

We are delighted to have the support of the British Business Bank as a cornerstone investor for NorthEdge IV. Our investment strategy has always been focussed on building businesses of national and international importance from the UK regions, so it is fantastic to have a leading UK institution backing a UK-focussed fund – reinforcing our shared commitment to driving growth across the Nations and regions of the UK. The British Business Bank’s support, alongside the support from a number of our existing investors and LGPS Funds, enables us to continue partnering with ambitious businesses and management teams to deliver meaningful regional and economic impact.

Further Information

If you are a journalist and have a media enquiry, please contact mediaenquiries@british-business-bank.co.uk.

Notes to editors

About the British Business Bank

The British Business Bank is the UK government’s economic development bank. Established in November 2014, its mission is to drive economic growth by helping smaller businesses get the finance they need to start, scale and stay in the UK. Its remit is to design, deliver and efficiently manage UK-wide smaller business access to finance programmes for the UK government.

The British Business Bank’s core programmes support £23bn 1  of finance to almost 64,000 2  smaller businesses. British Business Bank plc is a public limited company registered in England and Wales, registration number 08616013, registered office at Steel City House, West Street, Sheffield, S1 2GQ. It is a development bank wholly owned by HM Government. British Business Bank plc and its subsidiaries are not banking institutions and do not operate as such. With the exception of BBB Investment Services Limited they are not authorised or regulated by the Prudential Regulation Authority or the Financial Conduct Authority. BBB Investment Services Limited is authorised and regulated by the Financial Conduct Authority. A complete legal structure chart for the group can be found at British Business Bank.

The transaction described above does not constitute or imply any endorsement, warranty or recommendation by the UK government, the British Business Bank plc, its subsidiaries or any other party in respect of NorthEdge Capital LLP or its products or services.

About NorthEdge Capital LLP

NorthEdge is a lower mid-market private equity firm headquartered in the North, owned, and built by its senior team, supported by a global blue chip investor base. 

With presence across the North and Midlands, the NorthEdge team have a 25-year track record of investing in businesses with ambitious management teams and significant growth potential. 

NorthEdge look to invest in like-minded businesses who have real ambition and the potential to shape global markets from the UK regions. They back management teams in the Technology, Healthcare and Business Services sectors, who recognise the value of having an experienced business partner alongside them, supporting them to build a better business.

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