Northern Gritstone has successfully raised £312m by concluding its investment focused on university spin-outs and IP-rich businesses in the Northern part of England.
The local authority pension funds have been the primary investors by providing more than £150m for the funding commitments, which includes South Yorkshire Pension Fund, West Yorkshire Pension Fund, Greater Manchester Pension Fund, Merseyside Pension Fund, and East Riding Pension Fund.
The metro mayors for Greater Manchester, West Yorkshire, and South Yorkshire, along with many leading institutional investors like M&G, Columbia Threadneedle, British Patient Capital, Lansdowne Partners, and Bruntwood have also offered additional investments to support the company’s goal to create a technology and innovation hub in the region.
The fundraising showcases Northern Gritstone’s significant rise since it initiated its first close in May 2022, with various investments in early-stage businesses and expansion of the investment team led by the Chief Investment Officer, Marion Bernard.
The company has already offered funding to 15 science and innovation-based businesses in the North of England, contributing approximately £100m in investment. Northern Gritstone’s future investments will primarily focus on science and technology-enabled businesses. Lazard Venture and Growth Banking worked as the financial advisor in the fundraising, while Macfarlanes and Pinsent Masons supported the company’s legal aspects.
The Northern Gritstone CEO, Duncan Johnson, has reportedly commented that the company’s unique “Profit with Purpose philosophy” and the Northern region’s world-class research and innovation have been the primary drivers of its success.