North East Fund Manager Celebrates Fund Impact Milestone

Fund manager, FW Capital is marking the full realisation of the Tees Valley Catalyst Fund which has provided £26 million of bond finance to 29 companies across the region.

The fund is now fully repaid, having helped businesses across the North East secure contracts worth almost £330 million, creating 588 jobs and safeguarding a further 1322. The Fund was backed by the Government's Regional Growth Fund via Tees Valley Combined Authority and delivered short-term loans to help businesses win contracts or finance performance bonds and warranties. 

The fund backed companies in a wide range of sectors including manufacturing and construction with local businesses such as Wilton Engineering, Hambleton Steel and benefitting from its support.

FW Capital continue to support businesses requiring short-term loans to finance contract-related bonds through the Teesside Flexible Investment Fund. Loans are available from £100,000 to £2 million to finance for example, advance payment guarantees, performance bonds, warranty bonds, highway bonds or water authority bonds. 

Joanne Whitfield, Fund Director at FW Capital explains: “The Tees Valley Catalyst Fund made a real difference businesses in Teesside, helping them win contracts that wouldn’t have otherwise been possible. Our commitment to assisting local businesses doesn’t stop with the realisation of the Fund. We’re currently working with businesses via the Teesside Flexible Investment Fund which we manage alongside backing from the Teesside Pension Fund. We want to encourage people to talk to us when looking to access bond finance and take advantage of the fund, which can help businesses successfully tender for contracts. This sits alongside our broader range of other funds under management, allowing us to provide flexible capital to back growth and innovation for all types of businesses across the region.”

Teesside stainless steel alloy specialist and manufacturer Paralloy Group was the first local business to receive investment from the Teesside Flexible Investment Fund. This backing has played a key role in Paralloy’s next stage of growth, facilitating activities that are generating new jobs locally, delivering a significant impact on the Teesside economy while meeting the increased demands from industrial markets and advances in new technologies. 

The Teesside Flexible Investment Fund can be used for a variety of business needs including:

• Loans from £100,000 to £2 million for contract-related bonds including advance payment guarantees, performance, warranty, highways and water authority bonds. Repayment terms are available of up to two years. 

• Loans from £250,000 to £3 million for residential and non-speculative commercial developments. Providing up to 100 percent of build costs for suitable schemes with repayment terms available up to three years. 

• Loans and equity investments from £250,000 to £3 million for management teams seeking to own and run their own business. Investments are available between 1-7 years.

The Tees Valley Catalyst Fund closed to new applications in 2023.