In Yorkshire and the Humber, private capital investment from private equity and venture capital firms reached £465 million in 2025.
The finding comes from the Private Capital in Yorkshire and the Humber 2026 report, which highlights the long-term value of such investment, with a total of £7.1 billion invested across the region in the past five years.
Michael Moore, chief executive of UK Private Capital, said: “Yorkshire and the Humber has a strong and increasingly diverse population of businesses supported by private capital.
“The region has real strengths in its business base, its universities and its growing spinout ecosystem.
“With the right policy and regulatory environment, private capital can play an even greater role in helping Yorkshire and the Humber build on those strengths and support the next generation of high-growth companies.”
North Yorkshire currently has 11 active spinouts, and York has 18, many of which originate from the University of York.
These spinouts are businesses built around intellectual property developed through university research and play a key role in regional innovation.
The report states that businesses backed by private capital are 20 per cent more likely to achieve sustained revenue growth above 10 per cent per year compared to those without such backing.
Venture-backed firms are also 10 per cent more likely to be internationalised and three times more likely to file patents.
Dan O’Connell, M&A practice lead – North at Gallagher, said: “This report demonstrates the already active and significant role such investment is playing in shaping and driving economic growth and prosperity in the region.
“By working collectively and collaboratively, private investors, public sector stakeholders and professional advisors can continue to unlock new pathways for innovation and deliver the strong regional investment that remains the bedrock of sustainable economic growth and development.”