Northern Gritstone, the investment firm backed by the universities of Leeds, Liverpool, Manchester, and Sheffield, has secured another £20 million in funding from existing shareholders.
The British Business Bank has injected £10 million, bringing its total commitment to £40 million. Northern Gritstone also identified Andrew Law, chief executive of hedge fund Caxton Associates, as having increased his commitment.
The fundraising is part of a one-year rolling close, which has now brought Northern Gritstone’s assets under management to £382 million. The firm has not revealed a target amount.
“This strong start to Northern Gritstone’s rolling close in today’s challenging fundraising environment shows the belief in innovation coming from the North of England.
“The region is now an integral part of the UK’s Technology Diamond, and we are proud to support the incredible talent of the North, helping to commercialise groundbreaking research into internationally commercial businesses.”
Duncan Johnson, chief executive officer of Northern Gritstone
Northern Gritstone has made 50 investments since it launched in May 2022, focusing on deep tech and life sciences spinouts from the four aforementioned universities. It also invests in startups throughout the region, dubbed the Northern Arc.
The firm initially achieved a £312 million close in October 2023, with nearly half of that coming from the South Yorkshire Pension Fund, the West Yorkshire Pension Fund, the Greater Manchester Pension Fund, the Merseyside Pension Fund, and the East Riding Pension Fund.
In June last year, Northern Gritstone partnered with Parkwalk Advisors to launch the Northern Universities Venture Fund. That fund uses the UK’s Enterprise Investment Scheme, which offers tax breaks to investors in eligible companies.
