The Teesside Flexible Investment Fund has completed its first investment since the launch of the £20million fund last year, demonstrating how the Fund is helping Teesside businesses to grow and provide a major boost to the local economy.
Teesside stainless steel alloy specialist and manufacturer Paralloy Group has received a seven figure loan from the Teesside Flexible Investment Fund which is managed by FW Capital with investment from the Teesside Pension Fund.
The investment has helped Paralloy with their next stage of growth, facilitating activities that will generate new jobs locally and have a significant impact on the Teesside economy while meeting the increased demands from industrial markets and advances in new technologies.
Since the launch of its Billingham site in 1967, Paralloy has specialised in the transformation of raw elements into world-class products that power the Syngas & Ethylene, ethylene, and syngas industries. This includes the manufacture of specialist centrifugal castings in horizontal and vertical configurations in high steel alloy materials along with static castings, for use in high-temperature furnace applications. Paralloy’s products are used for power generation and transportation to manufacturing and critical chemical industries.
Today Paralloy is a global business that works across fives sites in the UK, with headquarters in Billingham and a presence in Middlesbrough and Sheffield. It is the third largest operator in its field and doubled its workforce in the last five years to employ over 500 people across the North East and over 1000 globally. The firm was also awarded a 2024 King’s Award for Enterprise.
Robert McGowan CEO said: “Paralloy is proud to be based in Teesside, employing local people and showcasing our local capabilities alongside our global presence. We’re committed to driving economic growth and this is why we are working with FW Capital and the Teesside Flexible Investment Fund.
“The North East is making a solid claim as a key player in the UK’s energy transition and we’re well positioned to support the next generation of industry and the fuels of the future.
“The support from Alex Gent at FW Capital has been very important. We’ve had a relationship with FW Capital since 2019 when Paralloy received funding from the Tees Valley Catalyst Fund to support previous growth plans.
“It was a logical step forward to work with them again as we enter our next phase of growth, seeking new project wins with several exciting local opportunities.”
Alex Gent, Senior Investment Executive at FW Capital said: “We have a long-standing relationship with Paralloy and this investment has been an opportunity for FW to support their next stage of growth. Impressive would be an understatement when talking about what the management have achieved in that time, and I’m looking forward to seeing how this next chapter unfolds following their recent acquisition of Manoir.
“As Teesside looks to lead the way with decarbonising industry through initiatives such as Net Zero Teesside and the work of the East Coast Cluster, having a company such as Paralloy operating locally with their market leading technologies in this sector is a real asset to the region. Alongside this, their growth as a quality employer in Teesside and the opportunities this provides to retain local talent in the area make this investment a fantastic fit for the Fund.
“These transactions always take a village so, in addition to the team at Paralloy, I must also thank Richard, Imogen and the team from Ward Hadaway who acted on behalf of FW and James, Richard and the team at Interpath who supported on the diligence.”
Joanne Whitfield, Fund Manager at FW Capital added: “It’s fantastic to complete the first deal under the Teesside Flexible Investment Fund. Helping local businesses make a real economic impact in Teesside is the reason we launched the Fund and Paralloy is a great example of how the finance can help firms to scale up, bringing new opportunities and jobs to the area.”
John Kabuye, Chairman of the Teesside Pension Fund said: “It’s great to see FW Capital through the Teesside Flexible Investment Fund putting the Pension Fund’s money to use to help local businesses make a positive impact in the local area whilst also delivering meaningful returns for the Pension Fund.”
Advisors on the deal were Richard Butts and Imogen Holland from Ward Hadaway and Dahren Naidoo from Freeths.
Designed by FW Capital with investment from the Teesside Pension Fund, the Teesside Flexible Investment Fund provides a mix of property development funding, contract-related bond finance and finance to support management teams in buying a business, covering Hartlepool, Middlesbrough, Redcar and Cleveland and Stockton-on-Tees. This provision of loan and equity packages to support management buy-outs and the transfer of ownership is a first for FW Capital.
