Private equity group’s boost for firms as it sets up office in city

A newly-established private equity firm is poised to invest in fast-growing Yorkshire companies after opening an office in the region.

NorthEdge Capital’s Leeds office is led by Andy Ball, who previously ran the northern operation at private equity firm LDC.

Over the years, Mr Ball has invested in an eclectic range of businesses, including textile firms and companies providing hair straighteners.

Hide Ad
Hide Ad

NorthEdge, which has UBS as its global placing agent, is looking to invest sums of between £5m to £30m in firms with turnovers ranging from £10m to £100m. The Leeds office is expected to have three staff in the near future.

NorthEdge’s first fund was closed at £125m, a figure which has been achieved by only a handful of first time funds in the lower mid market since the credit crunch.

The funding could be used for buyouts, development capital and equity release. NorthEdge has been established as an autonomous funder, which will focus on backing businesses in the north of England. All investment decisions will be made locally, instead of London.

The Yorkshire Post understands that NorthEdge is in talks over four deals, with at least one being based in Yorkshire.

Hide Ad
Hide Ad

A source said: “It’s felt that the discrete advisory community in Yorkshire, needs a discrete funding community.”

NorthEdge, which is backed by large European pension funds, is expected to invest a large proportion of its funds in Yorkshire.

Mr Ball and NorthEdge’s managing partner Grant Berry have extensive knowledge and experience in the Yorkshire market.

Mr Ball, who has a PhD from Leeds University in mechanical engineering, was a corporate finance partner at PricewaterhouseCoopers (PwC) from 1988 to 1996.

Hide Ad
Hide Ad

He went on to join LDC’s office and founded the firm’s Manchester operation in 2000.

Mr Ball was responsible, along with Grant Berry, for 35 transactions made in the North from 2000 to 2008.

Although private equity firms are active in the Yorkshire market, few have offices in the region.

Over the last decade, a number of private equity houses have decided to cover Yorkshire from Manchester.

Hide Ad
Hide Ad

NorthEdge’s decision to set up a base in Leeds should provide a shot in the arm for the region’s financial services sector. Concerns about the state of the sector were expressed at a recent Yorkshire Post Business Club, when former banker Martin Allison delivered a damning assessment on the state of the industry.

Mr Allison bemoaned the lack of significant activity in investment banking and private banking in Yorkshire and the retrenchment of private equity houses to Manchester and London.

Related topics: