Private Capital makes a £15.7bn contribution to the North West’s economy

A new report has found that businesses backed by private capital generate £15.7bn for the North West’s economy each year.

Private Capital in the North West was launched by the British Private Equity and Venture Capital Association (BVCA) at Addleshaw Goddard in Manchester, showcasing the industry’s importance to growth in the nations and regions of the United Kingdom.

In 2024 alone, private capital invested £2.3bn into businesses in the North West. Private capital employs an active ownership model which is a hands-on approach that helps drive value creation in portfolio companies through strategic and operational improvements, whilst supporting wider economic development.

As of 2025, private equity and venture capital firms support 873 businesses across the North West, up from 755 in 2023. These businesses are significant employers, supporting around 247,000 jobs - a 31% increase compared with 2023. 

The report highlights that university spinouts are increasingly driving regional growth and attracting venture capital investments. The University of Manchester, University of Liverpool and Lancaster University sit within the top 30 for producing spinouts in the UK and according to data from Beauhurst, the region saw 224 spinouts headquartered in the region since 2011, with £852m invested. 

To continue private capital’s positive impact on the North West’s economy, the BVCA has set out a series of recommendations for national and regional policymakers: 

• Increase proof-of-concept funding and introduce enhanced support measures such as high-quality entrepreneurship training and improved collaboration between academia and investors. These actions would help to overcome commercialisation delays and ensure university spinouts receive the necessary support.
• Mayoral Combined Authorities should ensure that their 10-year Local Growth Plans set out a clear and consistent economic vision that removes barriers to growth and investment. Growth strategies should align with the Government’s Industrial Strategy and complement related frameworks, including Local Skills Improvement Plans and Local Transport Plans.
• Allow the UK visa system to be streamlined and modernised to introduce a more efficient, user-friendly process for high-skilled visa routes such as the Global Talent, Innovator Founder, and High Potential Individual (HPI) visas.

Commenting, BVCA Chief Executive Michael Moore said: 

“The North West is an exciting destination for private capital, whose investment is supporting the development of 873 businesses in an important region of the UK. These businesses bring real value to local communities through the 247,000 jobs they support.

“However, while there is much to celebrate about the scope and scale of investment in the region’s businesses, it could be even more substantial and close the gap with other parts of the country. Policymakers, regulators, and industry all have a role to play in helping to facilitate greater levels of investment in the nations and regions of the UK, to ensure that opportunities are not lost.”

Notes to Editors 

For further information, please contact:  
BVCA Press Office 
Email: [email protected] 

A full copy of the report can be found here. 

Photographs from the launch event can be found here. 

About the British Private Equity & Venture Capital Association  

The British Private Equity and Venture Capital Association (BVCA) is the industry body and public policy advocate for the private equity (PE) and venture capital (VC) (private capital) industry in the UK. With a membership of over 600 firms, we represent the vast majority of all UK-based private capital firms, as well as their professional advisers and a large base of UK and global investors. The private equity and venture capital 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 equity and venture capital investment in the UK.