Why Irish eyes are smiling...
And how the UK government backed powerhouse fund has invested in its first overseas business
Hello Rainmakers,
This is a curious one, and could be a pivotal development in the life of the Northern Powerhouse Investment Fund, and other associated government backed funds as the fund backs an overseas company to help them expand in the UK.
This is your weekly freebie for browsers of Rainmakers.
Paid subscribers have this week had an insight into a deal reportedly worth £200m, where luxury tour operator, Great Rail Journeys, (GRJ) is now in the hands of its fourth private equity house, Vitruvian Partners. Fifty years on from what was founded as a hobby by a couple of British Rail workers, GRJ is now going full steam ahead to become the global market leader in escorted tours for the over 55s.
We also brought you a video interview and our round table on buy and build strategies.
Rainmakers subscribers usually get two unique pieces a week, but also full access to our back catalogue of investigations, scoops, and insights, including updates from The Secret Investor, interviews with entrepreneurs, and the leaders from VC and PE investors the likes of Endless, River Capital, Foresight, Mercia, Puma and LDC.
In a first this week it has emerged that the second iteration of the Northern Powerhouse Investment Fund is able to invest in overseas companies.
The deal in question is Outmin, an Irish bookkeeping start-up that automates financial data production and eliminates manual data entry, which has raised £3.3m, which it says will “accelerate its growth” across the North of England.
Outmin, headquartered in Dublin, raised the funding in a round led by Praetura Ventures, with investment coming from Praetura’s EIS Growth Fund and NPIF II – managed by Praetura as part of The Northern Powerhouse Investment Fund II, with other investors participating.
What is eye-catching about this deal isn’t just that it’s the first time the government backed powerhouse fund has been used to invest in an overseas company, but that the follow on funding from the Praetura-led NPIF II fund came on the back of investment from Praetura’s EIS fund, which is itself subject to fairly strict rules set by HMRC on what constitutes a qualifying investment.
We’re not saying there’s anything wrong with what they are doing, but it does seem like a straying of the purpose of a UK government-backed fund, which will ultimately be for the benefit of a company registered, and wholly owned, in the Republic of Ireland.
Praetura also confirmed that this is the first deal where the fund has invested in an overseas company.
We asked Praetura for a few more details on how the rules of the NPIF work, and how it is that the fund can invest in an Irish company. We were told the fund is designed to support businesses looking to establish, grow or expand within the region. This includes those relocating or increasing their footprint here.
Let’s remind ourselves that the stated purpose of the Northern Powerhouse Investment Fund II is “to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North.”
Further, it’s well drilled criteria insists that the Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance “for Northern smaller businesses”, providing funds to firms that “might otherwise not receive investment” and help to break down barriers in access to finance.
To add to that, we were told that Outmin already have a number of staff in the North of England and a key part of their growth strategy is to expand their footprint here, including their headcount, to support a growing number of UK based clients.
Any business receiving NPIF II capital has to commit to maintaining, establishing or growing a material presence within the respective region - this includes staff, operations and trading. The fund manager has to “carefully diligence” any plans as part of the investment process.
There’s no doubting founder Ross Hunt’s enthusiasm and he described the funding as marking “an exciting new phase for Outmin” that will enable the company to grow in the UK.
“The North West is a hotbed of activity, with incredibly exciting advancements happening across the AI landscape, and we’re looking forward to playing a bigger part within that ecosystem while supporting companies and accounting firms up and down the country with our intelligent solutions,” he said.
Curiously, Outmin does have a UK subsidiary, with the same directors as those quoted in the press release, but Praetura only confirmed that jobs will be created in Manchester, not who the company is which will be receiving the investment.
None of the filings of Outmin companies at Companies House had updates that reflected this capital raise, but we were assured that not only is this the first internationally registered business Praetura have invested in (in order to fuel expansion within the region), but that many scaling businesses they see have operations in other jurisdictions including some of those they have invested in.
The use of a UK government tax efficient investment scheme - the Enterprise Investment Scheme - to invest in an overseas company also seems to stretch the purpose of that particular investment device.
Two other venture funders we spoke to said they wouldn’t use EIS in the same way, as the negotiation with HMRC can be mired in back and forth negotiations that can potentially stall a deal, but that it seemed a little beyond the scope of EIS.
Maybe that’s a debate for another day. If you have any firm views on this, or any other aspect of investing and the direction of these funds, get in touch.
::
Private equity-backed TXP has hit install on its first acquisition, snapping up Metatech Solutions as part of its buy-and-build mission.
The Newcastle-based company, which specialises in Gen modernisation, will now supercharge TXP’s offering across consulting, development and talent resourcing.
CEO John Antunes said the firm “is closely aligned with Aliter’s buy-and-build strategy, and we’re actively looking to acquire companies that enhance our capabilities, and most importantly, meet the evolving needs of our clients.”
With a toolkit full of automation and legacy system wizardry, Metatech brings some serious software smarts to TXP’s growing digital transformation empire.
The deal supercharges TXP’s offering with unique tech talent and niche know-how just as demand for IT modernisation hits warp speed.
Antunes added: “This acquisition comes at an ideal time for both businesses. We know the team at Metatech very well, and so we know how much this deal will broaden TXP’s existing credentials, adding unique automated solutions, scarce technical skillsets, knowledge and experience.”
Metatech boss Andy Scott is staying plugged in and will help TXP power through its next growth phase.
Scott said: “We have seen rapidly increasing demand for modernising legacy IT systems, and we believe there is a very positive outlook for the Gen conversion market. Metatech’s proven track record and unique technology solutions will place the group in a strong position to benefit from this growing demand and the business opportunities it will create.”
::
Nottingham-based Phenna Group just forklifted its game, snapping up Statutory Inspections.
This marks Phenna’s eighth deal in 2025, showing they’re really lifting their portfolio.
As experts in forklift checks and compliance, Statutory Inspections will slot into Phenna’s Built Environment division under BTIS.
Julia Willis, MD of Statutory Inspections said: “We’re very proud of the business we’ve built and are delighted to be joining Phenna Group and BTIS. From our first conversations, it was clear that they share our commitment to quality, integrity, and customer service. We’re also excited to be joining forces with the BTIS team; this is a fantastic opportunity for our people and clients alike.”
Phenna’s CEO Phil Marshall said: “This acquisition is another strong step in our journey to build a best-in-class network of TICC businesses. Their culture, commitment to quality, and customer focus mirror our own, and I’m excited to see what we can achieve together as part of our Built Environment division.”
With legal teams Browne Jacobson, Johnston Carmichael, and HCR Legal involved, this deal is fully compliant and ready to roll.
::
Destructive cyber attacks have been in the news a lot lately, with Marks & Spencer bosses no doubt continuing to tear their remaining hairs out over the fallout from the hack which ravaged their online operations.
With other digitally vulnerable businesses anxiously scanning the horizon for the next big cyber menace, a Sheffield-based business could be the cavalry riding to the rescue. SCI Semiconductor has raised £2.5m in a funding round led by Mercia Ventures. The start-up aims to win the race to develop the world's first "memory safe" computer chip.
"Memory safety" is the key factor in around 70 per cent of cyber attacks. Traditional programming languages allow memory to be freely accessed, which provides flexibility for software developers but also creates vulnerabilities.
SCI says its chip will enforce security by dividing memory into compartments and tightly controlling how it is accessed. The fundraise means this firm will be able to build a team of engineers in Sheffield and bring its product to market.
::
TheBusinessDesk.com’s Rainmaker Awards return this summer and will showcase a wider cross-section of the region’s deals community.
The hotly-contested regional corporate finance awards will continue to recognise teams, individuals and deals, and the shortlist and winners will be decided on by the community, as always.
This year we have asked all firms to submit a short entry, along with the key deals they have advised on, to ensure our judges have the full information when making their selections.
Shortlists have now been drawn up at well-attended judging days. These shortlists were then voted on by a wider group of people from across the community, on a strict one vote per firm basis, to decide our 2025 winners.
For tickets for the event, please click here to secure your seat in the North West, Yorkshire, or the West Midlands.
::
Thank you for subscribing to Rainmakers.
We believe in good journalism that is worthy of your support. Please share this edition of Rainmakers so we can grow the message further and wider.
The insights and commentary we share with you are rooted in the trust we have built in the business community.
We’re also on LinkedIn - please join our Rainmakers community group for updates and offers and opportunities to comment.
If you have something you think we should look at, then either reply to this newsletter or email michael.taylor@thebusinessdesk.com.
Rainmakers is a reader-supported publication. To receive new posts and support our work, consider becoming a paid subscriber.