Tees Valley Catalyst Fund reaches full repayment

FW Capital’s Tees Valley Catalyst Fund delivered £26 million in bond finance to 29 companies across the North East, enabling them to win contracts valued at nearly £330 million.

The fund supported the creation of 588 jobs and safeguarded a further 1,322.

Now fully repaid, the fund was backed by the Government’s Regional Growth Fund through the Tees Valley Combined Authority and offered short-term loans to help companies secure contracts or finance performance bonds and warranties.

Joanne Whitfield, fund director at FW Capital, said: “The Tees Valley Catalyst Fund made a real difference businesses in Teesside, helping them win contracts that wouldn’t have otherwise been possible.

“Our commitment to assisting local businesses doesn’t stop with the realisation of the Fund. We’re currently working with businesses via the Teesside Flexible Investment Fund which we manage alongside backing from the Teesside Pension Fund.

“We want to encourage people to talk to us when looking to access bond finance and take advantage of the fund, which can help businesses successfully tender for contracts.

“This sits alongside our broader range of other funds under management, allowing us to provide flexible capital to back growth and innovation for all types of businesses across the region.”

The fund supported companies in sectors such as manufacturing and construction, including Wilton Engineering and Hambleton Steel.

FW Capital continues to provide short-term loans for contract-related bonds through the Teesside Flexible Investment Fund.

Loans are available from £100,000 to £2 million to finance for example, advance payment guarantees, performance, warranty, highways and water authority bonds.

The first business to benefit from the new fund was Paralloy Group, a Teesside-based stainless steel alloy specialist and manufacturer.

This backing has played a key role in Paralloy’s next stage of growth, facilitating activities that are generating new jobs locally, delivering a significant impact on the Teesside economy while meeting the increased demands from industrial markets and advances in new technologies.

The Teesside Flexible Investment Fund offers a variety of finance options for businesses.

These include loans from £100,000 to £2 million for contract-related bonds, with repayment terms of up to two years.

It also offers loans from £250,000 to £3 million for residential and non-speculative commercial developments, funding up to 100 per cent of build costs with repayment terms of up to three years.

In addition, the fund provides loans and equity investments of between £250,000 and £3 million for management teams aiming to take ownership of businesses, with investment periods ranging from one to seven years.