Mercia Fund Managers (www.merciatech.co.uk), which provides loans and equity investment for SMEs and technology firms, has opened an office in Newcastle.

This follows its appointment to manage the £27 million North East Venture Fund, which will invest in SMEs in Durham, Northumberland and Tyne and Wear.

The company has also appointed Jan Oosthuizen as investment manager.

He joins from PWC and has eight years’ experience in accountancy and finance.

The North East Venture Fund invests sums of up to £1 million in firms with high growth potential, in particular those engaged in innovation or developing new business models.

It is part of the £120 million North East Fund, which is supported by the European Regional Development Fund.

Firms that receive investment may also be able to access sums from other funds under Mercia’s management.

Ian Wilson, who leads the North East investment team, said: “With the launch of the Venture Fund and the Newcastle office, we will be stepping up our operations in the region and continuing to build our team.

“We look forward to supporting the next generation of emerging stars in the North East.”