With Andy Burnham as the new prime minister, Manchester is firmly in the spotlight, prompting a wider discussion about the role the Northwest plays in driving UK economic growth. Stephen Roberts, Partner at mid-market private equity firm ECI Partners in Manchester, has spent much of his career investing in businesses across the Northwest. He comments: “I’ve watched Manchester evolve into one of Europe’s busiest investment markets and a national dealmaking centre. There’s a huge amount of foreign direct investment in Manchester, which is now in the top ten large European cities in the Regions of the Future rankings. Venture capital investment into the Northwest reached around £2 billion in 2024.”
The city has a strong population of PE and VC funds based here, with ECI having been in Manchester for almost thirty years. Investment activity is particularly strong at the lower-cap end, with many deals, which gives ECI sight of opportunities early. ECI’s Manchester office leads investments across the UK and internationally and has led a third of the deals in the company’s current fund.
For Roberts, one of Manchester’s greatest strengths is that it has managed to grow without losing its collaborative culture: “The investment community remains highly connected. The city is big, but small too – founders know investors personally, advisers work closely together and relationships are built over years rather than individual transactions. For Northwest founders, having your investor nearby often means problems can be discussed over coffee rather than waiting weeks for a formal meeting and those informal conversations can make a real difference.”
Manchester as a broad growth hub
Roberts observes: “Manchester is often described as a technology hub, but I think that’s only part of the story. The region is certainly home to some exceptional technology and digital success stories including Boohoo, THG, AO, On the Beach and more recently Matillion. But what we actually see is a much broader growth economy. Across the Northwest there are outstanding businesses spanning software, business services, industrial technology, infrastructure, healthcare, travel and education. At ECI, our Manchester office has backed businesses across the Northwest region including Citation,Clarke Energy Services, CPOMS, Moneypenny, CMap and Mobysoft. They all operate in different sectors, but they share the qualities we’re looking for: strong leadership teams, resilient business models and significant opportunities for growth.”
Evolution of the North West’s professional services community
A growing community of investors, advisers and entrepreneurs has helped create an environment where ambitious businesses can flourish. Where major transactions may once have been led from London, Manchester is now increasingly home to nationally focused corporate finance advisers, M&A specialists and sector experts.
However, Roberts thinks there is still more opportunity for unlocking growth in the region: “Better connectivity across the North remains one of the biggest opportunities for further growth. International travel out of Manchester is excellent, but it can be quicker to reach Amsterdam than Newcastle. Improving transport between northern cities would make it easier for businesses to access talent, customers and investment. We’ve said this for years and progress has been slow, but it’s still the biggest single thing that would help the Northwest build on the past decade’s growth.”
Roberts continues: “One of more dramatic changes that you could expect to strengthen the region is Andy Burnham becoming PM. This will continue to shift the country’s centre of gravity away from London, with Burnham talking about a ‘Downing Street North’ – a permanent government base here in Manchester. It is an interesting challenge to the London-centricity of the UK, and I’d expect a renewed focus on devolution with Manchester and the Northwest front and centre, which should be genuinely exciting for businesses and investors in the region.”
Roberts concludes: “Having invested from Manchester for almost three decades, we’ve seen successive generations of entrepreneurs build exceptional companies here. The ambition has always been present and the environment to support it keeps improving. Whatever the political landscape, I believe the Northwest will continue to be one of the UK’s most exciting places to build and scale a business.”
