Private capital invests more than £8.5 billion in North West businesses over five years

New research shows that private equity and venture capital firms invested more than £1.8 billion in North West businesses in 2025, taking total investment over the past five years to more than £8.5 billion.

The report, Private Capital in the North West 2026, which will be launched by UK Private Capital at an event taking place in Manchester today in partnership with Gallagher, highlights the industry’s contribution to the regional economy and its role in supporting business growth, innovation and productivity.

Private capital currently backs 873 businesses across the North West - 393 by private equity and 480 by venture capital - supporting around 247,000 jobs. Private capital-backed businesses generated £15.7 billion in gross domestic product in 2025.

Investment in 2025 included £1.4 billion in buyout investment into established and mature companies. Venture capital accounted for £214 million, reflecting early-stage funding for innovative businesses seeking to enter the market. A further £166 million went into growth capital, supporting early and mid-stage companies looking to scale their operations. 
 

Supporting business growth

Analysis conducted by Henham Strategy for the report, shows that businesses backed by private capital in the West Midlands are more likely to deliver sustained growth, internationalise and innovate than the wider business population:

• North West companies that receive private capital backing are 20% more likely to also deliver sustained annualised revenue growth above 10% per year than firms without private capital backing.
• Venture-backed firms are more outward looking. Backed businesses in the North West are 40% more likely to also be internationalised than those not backed by VCs, which could indicate earlier access to export markets and the investor networks that can help businesses expand overseas.
• Innovative businesses often seek to protect and commercialise their intellectual property. North West venture-backed firms are also 2.5x more likely to file patents than businesses not-backed by the industry.
   

North West spinout ecosystem

The report also examines the region’s university spinout ecosystem. Beauhurst data identifies 171 active spinouts across the North West, including 70 in Manchester, 21 in Liverpool and 17 in Lancaster.

The North West benefits from research strengths at institutions including the University of Manchester, the University of Liverpool and Lancaster University, alongside major life sciences hubs in Liverpool, Daresbury and Alderley Park.

Recommendations for regional growth

The report calls for action to strengthen the North West’s investment ecosystem, including:

• scaling programmes that help spinouts and innovation-led businesses commercialise and raise external funding;
• ensuring pension reforms and Local Government Pension Scheme pooling support regional growth and a diverse private capital ecosystem;
• improving awareness of private equity and venture capital among SMEs seeking long-term growth capital
• strengthening regional skills infrastructure and modernising high-skilled visa routes; and
• accelerating planning decisions and investment in transport, energy, digital infrastructure and strategic growth sites.

“Private capital already plays a substantial role in the North West economy, backing businesses across every sector and supporting a vibrant spinout ecosystem. Over the past five years, the region has attracted more than £8.5 billion of investment, supporting companies to innovate, scale and compete.

“While we should celebrate this success, with the right policy and regulatory support private capital can play an even greater role in turning the North West’s ambitions into growth that reaches every part of the region.”

Michael Moore

Chief Executive, UK Private Capital

“With 873 businesses backed by private capital, supporting around 247,000 jobs and generating £15.7 billion towards regional GDP, the scale of the industry’s contribution across the North West is clear. Backed businesses are also 1.2 times more likely to deliver annual revenue growth above 10%, underlining the value that investment, expertise and ambition can bring to businesses with the potential to grow.

“Building on that strong foundation and continuing to connect ambitious businesses with the right investors, advisors and support will help unlock further potential, strengthen the North West’s capabilities and translate investment into sustainable growth and long-term economic value.”

Tom Mullock

Associate Director, Private Equity and M&A practice, Gallagher

Notes to Editors:

For further information, please contact:  
UK Private Capital Press Office 
Email: [email protected]

A full copy of the report is available here. 
 

Background:

About UK Private Capital

UK Private Capital is the industry body and public policy advocate for the private equity (PE), venture capital (VC) and private credit ecosystem in the UK. With a membership of 600 firms, we represent UK-based private capital firms, as well as their professional advisers and a large base of UK and global investors. The private equity, venture capital and private credit industry has a vital role to play in driving national and regional growth. Currently over 13,000 companies, employing more than 2.5 million people, are backed by private capital investment in the UK.  

About Gallagher

Gallagher is the brand name of Arthur J. Gallagher & Co. (NYSE: AJG) — the global insurance broker, risk management services and consulting firm headquartered in Rolling Meadows, Illinois.

Gallagher offers client service capabilities in more than 130 countries around the world through a network of correspondent brokers and consultants. 

For further information, please visit www.ajg.com/uk and www.ajg.com.