Businesses in Yorkshire and North East received £480m of support from private equity and venture capital in 2020

Businesses in Yorkshire and the North East received almost half a billion pounds (£480m) of support from private equity and venture capital firms in 2020, despite the economic pressures caused by the pandemic, according to new research.

The study by the British Private Equity and Venture Capital Association (BVCA) concluded that one in eight businesses supported by private capital firms in the UK in 2020 were based in Yorkshire and the North East.

The report said: “Yorkshire and North East England are distinct in the types of businesses they grow and the investments they attract.

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“Yorkshire commands a greater proportion of investment - 4.1% (£380m) of the total amount invested in the UK in 2020 - which is almost four times more than North East England.

Garry Wilson, the managing partner at Leeds-based Endless LLP, said : “Private equity is doing great things but needs to improve its public relations." Picture: JPI MediaGarry Wilson, the managing partner at Leeds-based Endless LLP, said : “Private equity is doing great things but needs to improve its public relations." Picture: JPI Media
Garry Wilson, the managing partner at Leeds-based Endless LLP, said : “Private equity is doing great things but needs to improve its public relations." Picture: JPI Media

“And the difference in amounts persists when looking historically, too. Yorkshire saw investment of £216m in 2019 and £705m in 2018, compared to the North East’s respective £136m and £365m.”

"However, in 2020, 68 Yorkshire-based businesses received investment, compared to 100 in North East England. That’s fewer companies, receiving larger sums, indicating they have reached a certain degree of maturity."

Garry Wilson, the managing partner at Leeds-based Endless LLP, said : “Private equity is doing great things but needs to improve its PR (public relations).

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He added: “The wider public would have a different view if we told our stories better.”

Mr Wilson believes the public may be unaware that pension funds typically have seven to 10 per cent of their funds in venture capital and private equity.

Mr Wilson added: “The market continues to be busy with more funds than ever looking for investment opportunities. This provides a fantastic opportunity for business owners to attract capital more easily than in living memory.”