One year after launch, Co-Fund III has channelled £3.1 million into 13 Northern Ireland companies, showing a strong early momentum for the region’s latest co-investment vehicle.
The £39 million equity fund, part of Invest Northern Ireland’s Access to Finance suite, is managed by Clarendon Fund Managers. Its remit is clear to back ambitious SMEs alongside private investors and business angels, helping promising businesses secure the capital they need to scale.
In its first 12 months, the fund completed 16 investments across 13 companies, targeting high-growth sectors such as health sciences, fintech, and agriculture. Individual investments range from £150,000 to £500,000, with average initial cheques expected to settle around £250,000 over the fund’s 10-year lifespan. Around 65 companies are projected to benefit in total.
Co-Fund III follows two earlier Co-Fund NI programmes, also managed by Clarendon. Together, those funds invested £51 million across 102 companies through more than 350 rounds.
Private investors matched that with £113 million, bringing direct investment into portfolio companies to £164 million. Those businesses later attracted a further £210 million, lifting total capital raised during their growth journeys to £374 million.
Unlocking private capital at scale
Co-Fund III’s model hinges on partnership. The £3.1 million deployed so far has been matched by £5.4 million in private investment, alongside £1.9 million in additional leveraged funding.
The structure ensures that at least half of each round is backed by private capital. While the fund can provide up to 50% of a deal, it typically accounts for around 35%, drawing in support from angel investors, syndicates, venture capital firms, universities, and corporate backers.
This blended approach does more than share risk. It stretches public funding further, deepens investor networks around each company, and strengthens the credibility of early-stage businesses seeking follow-on capital.
Female founders gain ground
Four of the 13 companies backed in the first year are female-founded businesses, representing 31% of the current portfolio. In a funding landscape where women-led ventures often struggle for equal access, that share stands out.
One example is Senergy Innovations, based in Carryduff. The company designs, supplies, and installs complete solar thermal hot water systems for homes and businesses.
Beyond renewable heating, Senergy has developed Sentherm conductive polymers engineered with tailored filler networks and anisotropic material design. The result is hybrid polymers suited to electric vehicles, batteries, and automotive electronics, delivering 95% of aluminium’s thermal performance while reducing component weight by 25–45%.
Senergy secured £500,000 from Co-Fund III as part of a £1.25 million round. The funding has supported team expansion, product development for the automotive sector, and increased sales of its solar solutions.
Kathryn Hill, Chief Operating Officer, Invest NI, said: “The response to Co-Fund III has been very positive. A combined investment of over £10m in the first year is very encouraging and a strong endorsement of our local companies. The range and spread of businesses receiving investment is also good to see and will support our ambition to see more local high-growth businesses succeed.”
Claudine Owens from Clarendon Fund Managers said: “We are proud to mark the first anniversary since the launch of Co-Fund III in December 2024. As the third iteration of the Co-Fund suite of investment funds launched as part of Invest NI’s Access to Finance initiative, the figures we are reporting today reflect the quality of local SME businesses here and their strong demand for funding for growth.”
Furthermore, Owens added, “Investment in high-growth SMEs across Northern Ireland is key to unlocking further opportunities for the local economy, and we are helping some of the region’s best entrepreneurs to realise their ambitions. Co-Fund III has gotten off to a very positive start. Clarendon is pleased to be the manager of Co-Fund NI’s entire equity investment fund portfolio and has supported investments in over 100 investee companies to date since the first iteration of Co-Fund was launched in 2012.”
