VENTURE capital specialist Northern Venture Managers invested more than £26m during last year.

NVM, which has offices in Newcastle, Reading and Edinburgh, has now invested more than £70m since the start of 2000.

Eleven new investments were made last year, demonstrating NVM's continuing commitment to the sub-£15m private equity market despite difficult trading conditions.

In a challenging economic environment and declining stock markets, NVM has invested across a range of industry sectors. New deals last year included six £5m-plus buy-outs, and profitable exits were made from John Wood Group, Ai Qualitek and Belcot, all achieving good returns on the original investment.

Notable new investments in included the £5m management buy-out of corporate hospitality specialist Keith Prowse, the £13m management buy-out of modular building manufacturer Horncastle Industries, the £5m management buy-in/buy-out of Arrow Industrial Group, the industrial doors and curtains manufacturer, and the £10m institutional buy-out of training contractor The Longhirst Group.

NVM also backed the £7m management buy-in/buy-out of Crantock Bakery, one of the UK's leading suppliers of premium hand-made Cornish pasties.

Another investment opportunity was provided by the £5m management buy-out of West's Engineering Design, which provides engineering design and project management services.

Colin Kidd, NVM's investment director, said: "Over a difficult 12 months, we have been extremely busy and more active than many of our competitors. We have kept to our established approach of investing in a broad range of industry sectors, and have made some excellent additions to our portfolio.

Looking ahead, we expect to maintain this level of activity and to see a continuing healthy deal flow during 2003.