A popular Manchester-based bar and leisure group is investing in its future growth after receiving a six-figure investment to back a recent Management Buy Out (MBO) of the business.
Northern Hospitality (MCR) has received funding from NPIF II – FW Capital Debt Finance, which is managed by FW Capital as part of the Northern Powerhouse Investment Fund II (NPIF II)
Founded in 2018, Northern Hospitality (MCR) operates three iconic sites across Manchester’s Northern Quarter, including Quarter House, Hula and The Fitzgerald. All venues operate from the same building, which is in a prominent location in Stevenson Square. The investment from FW Capital has assisted the smooth completion of the management buyout by John Wilson and will support the business as it enters its next phase of growth.
Andrew Blackburn, Chairman at Northern Hospitality MCR said: “Northern Hospitality (MCR) is a thriving business with our venues appealing to various audiences who are seeking food, live sport and music, and outdoor space in the heart of the Northern Quarter. With John at the helm of the business, I will continue to play a key role, supporting the operation of our three iconic sites located in Manchester’s dynamic and thriving Northern Quarter. The investment process with Adam Husband and the team at FW Capital has been seamless, and we are incredibly pleased with the partnership and support we’ve received.”
Adam Husband, Senior Investment Executive at FW Capital added “The hospitality sector continues to be squeezed with all the current financial pressures so it’s important that ambitious operators can access funding to support the running of their business. We have been impressed by the management team at Northern Hospitality (MCR) and it’s great to assist the completion of the MBO. By accessing funds from NPIF II we are demonstrating our appetite and ability to back the North West hospitality sector and assist operators like Northern Hospitality (MCR).”
Tom Hall, corporate partner at Pannone Corporate, who advised Northern Hospitality shareholders, John Brearley and Andrew Blackburn, commented: “Northern Hospitality is a fantastic homegrown business that has been expertly led by NQ veterans John and Andrew through what has been some tough trading conditions. Despite the challenges facing the leisure and hospitality sector, the business has geared itself up perfectly with three well-positioned brands. This round of funding and subsequent MBO lays solid foundations for the next stage growth and we’re delighted to have played a small part in helping to bring that future ambition to life.”
Sue Barnard, Senior Investment Manager at the British Business Bank, said: “Northern Hospitality is a strong example of how access to funding from the Northern Powerhouse Investment Fund II is helping ambitious businesses to invest in their future, safeguard jobs and continue contributing to the local economy. Through NPIF II we are helping to breathe life into the hospitality sector, supporting community focused spaces and driving regional economic growth.”
NPIF II – FW Capital Debt Finance can provide loans in the NPIF II area with a primary focus on the North West regions of Cheshire, Cumbria, Greater Manchester, Lancashire and Merseyside.
The £660m Northern Powerhouse Investment Fund II (NPIFII) covers the entire North of England and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.
The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North of England. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for the North’s smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.
