Mark Barry, Senior Investment Manager, British Business Investments, said: “This £15m commitment from British Business Investments will enable Par Equity to increase its support for smaller businesses in the North of England, Scotland and Northern Ireland at a time when the business know-how and financial support that angel investors can deliver is needed more than ever.”
Paul Munn, Managing Partner of Par Equity, said: “Par Equity’s investment model, combining our EIS Fund with experienced business angel investors and co-investment capital, is a powerful recipe for providing patient capital. We already benefit from a flow of high quality investment opportunities and this commitment from the Regional Angels Programme will bring us increased financial firepower. It will help us enhance our growing reputation as the investment partner of choice for the best young companies in the regions and help them to attract the talent they need to realise their potential.
“At Par Equity we have long recognised and supported the opportunities offered by entrepreneurs and their companies based in the North. That philosophy is now in line with government thinking and this funding will enable us to leverage our network to find the best young companies to invest in, delivering value to them and the whole economy.”
Since it was founded in 2008, Par Equity has invested more than £70m in 57 companies and the portfolio has attracted over £110m of further investment from third party investors.
The Regional Angels Programme helps reduce regional imbalances in access to early stage equity finance for smaller businesses across the UK, because it plays an important role in funding businesses with growth ambitions. The programme aims to address this issue by increasing the availability, supply and awareness of angel and other early-stage equity investments across the country, particularly in areas where this type of finance is less readily available.
The Regional Angels Programme works by committing funds for investment alongside business angels and other early stage equity investors, acting as a catalyst to bring longer-term capital to smaller businesses with growth ambitions. Launched in 2018, it forms part of the Government’s response to the Patient Capital Review.
Like all British Business Investments programmes, the new programme expects to generate a market rate of return on its investments and will be investing on a commercial basis.
