The Northern Powerhouse Investment Fund II (NPIF II) has completed its first investment in Tees Valley following the launch of the £660 million fund in March this year.
Based in Stockton-On-Tees, Southern Asset Management is a provider of specialist structural testing and asset management of lighting columns (streetlamps), masts, signs and structures in Teesside.
The firm has secured a six-figure investment from NPIF II – NEL Debt Finance, which is managed by NEL Fund Managers as part of the Northern Powerhouse Investment Fund II.
Operated by the British Business Bank NPIF II will offer a range of commercial finance options with smaller loans from £25k to £100k, debt finance from £100k to £2m and equity investment up to £5 million.
Southern Asset Management is at the forefront of innovation and development within the lighting testing and inspection sector.
The firm was founded in 2022 by current CEO, Steve Southern, after spotting a gap in the market to build unique software and equipment to carry out efficient non-destructive testing, empowered by the latest technologies.
Recently launching an online platform which enhances and streamlines the asset management process, the firm has amassed a growing client base across the UK. This includes recent work for OCU, on behalf of Boldyn Networks and Transport for London, to assess the load bearing capabilities of lighting columns for the installation of 5G wireless networks in central London.
The business previously secured funding from the first Northern Powerhouse Investment Fund in March 2023.
Since then, Southern Asset Management has increased its headcount from four to 13 team members and has tripled its turnover.
The new funding from NPIF II will be used to help Southern Asset Management expand into new markets, including onshore wind turbine testing and rail sectors, to support the UK’s green energy transition.
The investment will also be used to upskill and expand the firm’s current workforce from 13 to 17 employees, with a particular focus on recruiting and training young talent.
CEO Steve Southern said: “Both the Northern Powerhouse Investment Funds have been instrumental in fueling our company’s growth. From the initial application process to the ongoing support from the fund managers, the experience has been straightforward and intuitive. Thanks to this funding, we’re able to expand into new markets, win new contracts, and continue to deliver the highest level of service to our customers.”
Jane Siddle, Senior Investment Executive at NEL Fund Managers said: “Southern Asset Management is a pioneering business in its field, having developed a market leading asset management portal for customers ensuring regulatory and safety standards are proactively met and with the opportunity to move into new markets. It exemplifies the kind of ambitious, growing businesses in Tees Valley that align perfectly with the objectives of the NPIF II.
“With a clear vision for growth and impressive progress with their offering, Southern Asset Management presented an investment opportunity that we’re pleased to support.”
Sarah Newbould, Senior Manager at British Business Bank said: “The Northern Powerhouse Investment Fund II is committed to supporting businesses that are driving economic growth and innovation in the region. By investing in companies like Southern Asset Management, we’re fostering job creation and contributing to the region’s overall economic prosperity. We’re particularly excited to see Southern Asset Management plans to expand into the renewable energy sector, pushing forward the North East’s net zero ambitions.”
The funds in which the NPIF II invests are open to businesses with material operations, or planning to open material operations, in: Cheshire, Cumbria, Greater Manchester, Lancashire, Merseyside, City of Kingston upon Hull, East Riding of Yorkshire, North Yorkshire, South Yorkshire, West Yorkshire, Hartlepool and Stockton-on-Tees, South Teesside, Darlington, Durham, Northumberland, Tyneside, Sunderland.