National Wealth Fund's Patricia Galloway on how Leeds is cementing status as UK financial powerhouse
It was a hugely significant moment for Leeds when the city was confirmed as the home of a major new government body - and, almost six months later, it’s already feeling the benefits.
The National Wealth Fund (NWF), which has its offices off Whitehall Road, was set up to catalyse investment from the private sector.
With an enormous £27.8 billion budget to spend on emerging industries, it’s hoped that targeted cash injections in new sectors will encourage private finance to follow.
Chief People Officer Patricia Galloway explained how the team’s unique approach has so far yielded 46 deals, which represents an investment of £4.7 billion. That in turn has unlocked £12.3 billion in private capital and supported the creation of more than 17,000 jobs across the UK.
“We only invest in places where the private sector isn’t willing to go, which can be because of a number of factors,” she said.
“It could be that it relates to a new technology, for example. Many of the private sector banks have fairly rigid risk parameters - their credit teams might not necessarily be able to model what that investment will look like in the long term. That’s where we step in.
“We would obviously do a full risk assessment, because we expect to receive a financial return on any investment.
“Our involvement would help that industry to get started - and, hopefully, once up and running, the private sector would have the reassurance it needs to invest.”
She added: “We have already found that the very nature of us saying we’re getting involved with a new business has given comfort to the private sector, and they have invested more than we initially thought they would have.”
The NWF replaces the Leeds-based UK Infrastructure Bank (UKIB), expanding the former body with a mandate beyond infrastructure to encompass a broader range of sectors.
It was a strategic shift to enable the NWF to address areas where private sector investment is lacking. So far, these include green hydrogen, carbon capture, ports, gigafactories, and green steel, with more information on the expanded remit expected from the government later this year.
It comes as part of a mission to drive economic growth and support the UK’s transition to a low-carbon economy.
Ms Galloway, who joined the former UKIB in 2022, said that the existing foundations in Leeds allowed the NWF the best possible start.
“It meant we were able to hit the ground running,” she said. “We already had the people, the talent and the processes to begin work immediately. We had built up a fantastic banking and investments team with a really strong reputation across the private and public sector.”
A cornerstone of the NWF’s strategy is its role in unlocking private sector investment by venturing into areas deemed too risky by traditional banks. But as is the case when putting funds into any new industry, it can be a gamble.
“It is a risk,” explained Ms Galloway. “But we have brilliant and experienced bankers who look at deals carefully with very thorough analysis. While we do take more risk than the private sector, that’s the point. We’re here to ignite business. We’re the blue flame.
“When you take greater risk, there will be losses - and some of these investments won’t work. But it’s only by taking a very informed risk that these new businesses and technologies can get up and running.”
The NWF’s investments are already making tangible impacts across the UK. In Yorkshire, a £250 million investment in Quickline is expanding broadband access to rural communities, aiming to provide full-fibre to 170,000 rural homes and businesses.
Another significant investment is the £28.6 million equity stake in Cornish Metals Inc., facilitating the reopening of Cornwall’s South Crofty tin mine. This project is expected to create over 300 local jobs and revitalise domestic tin production, a critical component in electronic devices and renewable energy technologies.
The Chancellor Rachel Reeves previously told the YEP that Leeds would benefit from being the home of the NWF as it launched a recruitment drive, with plans to expand its 280-strong workforce to approximately 400.
But it has also reinforced the city’s status as a financial powerhouse beyond London, building on its already rich history in the sector.
“Not only is the NWF headquartered here, but the Bank of England is expanding its employee base in Leeds, as is the Financial Conduct Authority and UK Export Finance,” said Ms Galloway.
“There are 30 national and international banks already in the city. It also has the largest number of financial law firms outside of London and a huge number of professional services firms.
“It made sense to build on the strong foundations that Leeds already has. We have found exceptionally talented people from across the north of England here - the city is a great hub for talent.”
And aside from the practical benefits that come with being based in Leeds, Ms Galloway praised the city’s vibrant atmosphere and its appeal to professionals.
“There’s a really good energy and buzz in Leeds. It’s a bright, optimistic and high energy place,” she said.