PXN Group launches with aim to unlock £1bn for Northern firms by 2030

PXN Group, formed from the merger of Manchester-founded Praetura Ventures and Edinburgh-founded Par Equity, has officially launched after receiving Financial Conduct Authority approval.

The group, which describes itself as the fastest-growing venture and investment firm outside London and the South East, has set a target of unlocking £1 billion of funding for high-growth companies in the North of the UK and raising investment into Northern businesses by 50% by 2030.

It plans to invest at least £300 million directly and use its co-investment network to draw in around £700 million more from VCs, corporates and development banks across Britain, Europe and the US. It currently has 115 active portfolio companies and aims to double that number within four years.

The North-South gap

The group says it wants to tackle a long-standing investment gap. London still receives 60% of UK venture capital, while the North receives 10%. According to Dealroom, the North has 50% more potential scale-ups identified than London, and startups there generate more than seven times enterprise value for every pound of VC invested, against five times in London.

The North of the UK has a £1 trillion GDP, which would make it the 8th largest economy in Europe if it were independent. Almost half of the Russell Group universities are in the North, which also has strong productivity growth, yet the equity gap remains, and the group argues that capital needs to be coordinated and deployed at a far greater scale.

Dave Foreman, chief executive of PXN Group and founder of Praetura Ventures, said: “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.”

The merged business

After the merger, PXN Group has:

£700m of assets under management; each firm has tripled its AUM since COVID-19.

115 portfolio companies, from 150 businesses 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 staff, including an investment team of 23, backed by a further 50 operating partners with sector and technical expertise.

A co-investment model which, historically, has delivered nearly three times its direct investment.

The group operates from offices in Manchester, Edinburgh, Yorkshire and London. It will continue to manage existing funds and mandates while launching new programmes and partnerships aimed at closing the UK’s regional funding gap.

PXN Investments, its arm for financial advisers, will also sell VCT, EIS and inheritance tax planning products to advisers and their clients.