Listed asset manager M &G has invested in the first fund by Northern Gritstone, a new investment business focused on university spin-outs in Northern England.

Northern Grindstone, which launched in July 2021, was founded by the Universities of Leeds, Manchester, and Sheffield.

It aims to support the commercialisation of science and intellectual property-rich businesses originating from these three institutions.

Many of these opportunities are in emerging sectors in the UK such as advanced materials, health technology, cognitive computation, and artificial intelligence

Northern Gritstone aims to combine returns for shareholders with positive societal and economic impact, including supporting job creation in the north of England.

The business is expected to begin deploying capital and making its first investments in innovative start-ups over the coming weeks, having raised an initial £215 million from investors, including M&G.

The investment has been made by M&G’s catalyst strategy team which aims to invest up to £35 billion in innovative, privately-owned global businesses to create a more sustainable world.

It marks the strategy’s latest investment in UK academic innovation and impact following previous investments in Vaccitech, Oxford Nanopore Technologies, and in a strategy connected with the Cambridge ecosystem.

Alex Seddon, head of M&G’s catalyst team, said: “British universities have a growing reputation for exceptional research capabilities, successful spin-outs and innovation hubs but institutional capital has remained concentrated in the south.

“The momentum around Northern Gritstone is fuelling a thriving northern venture ecosystem, widening access for investors to back exceptional talent from across the UK.”