Private capital investment in Northern Ireland hits £384m in 2025
New research shows that investment by private equity and venture capital firms into Northern Irish businesses reached £384m in 2025, up from £94m in 2024.
The report, Private Capital in Northern Ireland 2026, which is being launched by the trade body UK Private Capital in Belfast today, showcases the industry’s importance to the Northern Irish economy. It finds that the total amount invested in Northern Ireland over the past 5 years reached almost £1bn (£943mn).
Private equity and venture capital firms currently back 186 businesses across Northern Ireland, supporting over 47,000 jobs. Private equity typically invests in established businesses to help accelerate growth and improve performance, while venture capital provides funding to earlier-stage, high-growth companies to help them scale up. The businesses backed by the industry contribute £3bn to the nation’s GDP annually.
Supporting business growth trajectory
Analysis conducted by Henham Strategy for the report, shows that Northern Irish businesses backed by the industry are more likely to be high growth, internationalise and undertake innovation activity:
- Northern Irish companies that receive private capital backing are 30% more likely to also deliver sustained annualised revenue growth above 10% p.a. than those without backing by the industry.
- Venture-backed firms are more outward looking. Northern Irish VC-backed firms are 10% more likely to also be internationalised than those not backed by VCs, which could indicate earlier access to export markets and the investor networks that can help businesses expand overseas.
- Innovative business often seek to protect and commercialise their intellectual property. Northern Irish venture-backed firms are also 3x more likely to file patents than businesses not-backed by the industry.
Northern Ireland’s vibrant spinout ecosystem
The report provides an in depth look at Northern Ireland’s spinout ecosystem – companies created based on intellectual property generated though university research. Data provided by Beauhurst for the report shows that Northern Ireland boasts 69 active spinouts.
These spinouts, primarily originating in Queen’s University Belfast and the Ulster University, are generating more investable businesses, particularly in technology, engineering and data led innovation. The majority (47) of spinouts are located in Belfast, with the rest spread across Northen Ireland’s local councils.
| Local Councils | Active spinouts | |
|---|---|---|
| Antrim and Newtownabbey | 6 | |
| Ards and North Down | 1 | |
| Armagh City, Banbridge and Craigavon | 2 | |
| Belfast | 47 | |
| Causeway Coast and Glens | 1 | |
| Derry City and Strabane | 5 | |
| Lisburn and Castlereagh | 3 | |
| Mid and East Antrim | 2 | |
| Mid Ulster | 1 | |
| Newry, Mourne and Down | 1 |
The report will be launched at the Northern Ireland Invest Forum, which brings together investors from leading private equity and venture capital firms, local institutional investors, policymakers, and portfolio companies to explore Northern Ireland’s growing strengths, emerging opportunities and strategic priorities.
While investment by the industry into Northern Irish businesses was particularly strong in 2025, the report makes several recommendations to both national and local policymakers about how the impact of private capital can be maximised across the nation. This includes:
- Calling for the UK government to scale programs such as the EIS and VCT schemes that have delivered a positive effect on the spinout ecosystem.
- The British Business Bank must ensure it catalyses competitive investment ecosystems across the UK, both through its regional angel funds, regional funds and wider programmes.
- To close domestic skills gaps, the Government should further seek to improve regional skills infrastructure, in partnership with industry and the Northern Ireland Skills Council.
Michael Moore, chief executive, UK Private Capital said: “Private capital is playing an increasingly important role in Northern Ireland’s economy, backing established businesses through buyouts while venture capital firms support a growing cohort of start-ups and scale-ups.
“This year, there is much to celebrate about the scale of investment into Northern Irish businesses. However, with a more supportive policy and regulatory environment, the industry can play an even bigger role in the economy and help to close the productivity gap with other parts of the United Kingdom.”
“Strong regional investment remains the cornerstone of creating long-term sustainable economic growth, and private capital the catalyst for powerful partnership. As an organisation focused on empowering enterprises, enabling growth, and enhancing resilience – through the provision of trusted advice and tailored insurance, benefits and risk management solutions – we are immensely proud to partner with UK Private Capital on its Nationwide Invest Series.”