PXN Group, the fastest-growing venture and investment firm outside of London and the South East, has officially launched following receipt of Financial Conduct Authority approval. Marking the start of operations under its newly formed merger, the group has set itself the target to unlock £1 billion in funding for high growth companies across the North of the UK and increase investment into promising northern businesses by 50% by 2030.
Edinburgh-founded Par Equity and Manchester-founded Praetura Ventures, now PXN Group, aim to invest at least £300 million into the ecosystem while leveraging its strong co-investment network to attract circa. £700 million in additional capital from VCs, corporates, and development banks across the UK, Europe and the US. With 115 active portfolio companies, PXN Group wants to double its portfolio in the next four years by making a significant number of new investments.
The launch of PXN Group seeks to address a persistent investment gap between the North and the South. London continues to receive 60% of UK venture capital, while the North receives just 10%. This is despite the North having 50% more identified potential scale-ups than London and its startups producing over seven times in enterprise value for every pound of VC invested, ahead of London’s five (according to Dealroom).
The North’s potential must not be overlooked. The North of the UK represents a £1 trillion GDP - which would be the 8th largest economy in Europe if independent. It is home to almost half of all Russell Group universities and boasts exceptional productivity growth. Yet the equity gap persists. While progress has been made, the scale of the opportunity still requires coordination and capital deployment at a much greater scale.
Dave Foreman, CEO of PXN Group and founder of Praetura Ventures: “The data is clear, the North delivers exceptional returns, is home to more scale-ups, and represents enormous untapped potential. The VC community is missing out on the Northern opportunity and we want to change that. Our commitment to unlock £1 billion by 2030 isn’t just about writing cheques. It’s about being the catalyst that makes the North impossible for global investors to ignore and channelling significantly more capital into the region’s next generation of founders. We will be measuring ourselves against the region’s start-up and scale-up success, not just our own.“
Following its merger, PXN Group enters the market with:
- £700m in assets under management - with both firms having tripled AUM since COVID-19
- 115 portfolio companies, across 150 business backed
- Recent portfolio successes include AEM, Street Group, AccessPay, Modern Milkman, Phlo, Fuuse, iGii and Robotiz3d
- £290m in portfolio revenue, supporting 3,100 jobs
- 58 team members with deep regional expertise and national reach, including an investment team of 23, supported by a further 50 operating partners who bring deep sector and technical expertise
- A proven co-investment model that has historically delivered almost three times its direct investment
Operating from offices in Manchester, Edinburgh, Yorkshire, and London, PXN Group will continue to manage existing funds and mandates while unveiling new programmes and partnerships to close the UK’s regional funding gap.
PXN Group will also offer a range of investment products through its financial advisor focused-arm, PXN Investments, for financial advisers and their clients, including VCT, EIS and inheritance tax planning services.
