Private equity and venture capital firms invested £1.78bn in North West businesses in 2025, taking total investment over the past five years to more than £8.5bn, according to industry body UK Private Capital.
The report, Private Capital in the North West 2026, found that private capital currently supports 873 companies across the North West – 393 by private equity and 480 by venture capital – supporting around 247,000 jobs. Private capital-backed businesses generated £15.7bn in gross domestic product in 2025.
Investment in 2025 included £1.4bn in buyout equity into established companies. Venture capital accounted for £214m, and a further £166m went into growth equity.
Analysis conducted by Henham Strategy for the report also shows that businesses backed by private capital in the North West are more likely to deliver sustained growth, expand into international markets and innovate than the wider business population. It stated that North West companies that receive private capital investment are 20% more likely to also deliver sustained annualised revenue growth above 10% per year than firms without private capital backing.
In addition, portfolio companies in the North West are 40% more likely to also be active in international markets than those without private capital backing, which could indicate earlier access to export markets and the GP networks that can help businesses expand overseas. Innovative businesses often seek to protect and commercialise their intellectual property. North West VC-backed firms are also 2.5 times more likely to file patents than businesses without private capital support.
The report calls for action to strengthen the regional investment ecosystem. Recommendations include scaling programmes to help spinouts commercialise, ensuring pension reforms support regional growth, and improving awareness of private capital among SMEs. It also asks for the "modernisation of high-skilled visa routes and accelerated planning decisions for digital and energy infrastructure".
Michael Moore, chief executive of UK Private Capital, said: "With 873 businesses backed by private capital, supporting around 247,000 jobs and generating £15.7bn 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."
