Two leading venture capital firms based in Scotland and the North of England are to merge, forming a new entity named PXN Group with more than £670 million in assets under management.

The merger between Edinburgh-founded Par Equity and Manchester-based Praetura Ventures is subject to regulatory approval by the Financial Conduct Authority.

According to both firms, PXN Group will be positioned as the fastest-growing venture and investment firm outside of London and the South East, having tripled assets under management since 2021. The new entity will focus on backing early-stage and scale-up companies across underserved regions of the UK.

In a joint statement, the companies said the merger would “unlock greater investment potential across underserved regions and offer a broader suite of opportunities for entrepreneurs, institutional investors, retail investors, public sector organisations, and financial advisers.”

PXN Group will offer equity investments ranging from £200,000 to £8 million across various sectors and growth stages, from seed to scale. The firm will also operate a platform for financial advisers, incorporating a range of investment products, including inheritance tax planning services.

Dave Foreman, founder of Praetura Ventures and now CEO of PXN Group, said: “This isn’t just a merger – it’s the start of something greater. PXN Group combines deep regional roots, complementary strengths, and a shared belief that founders deserve more than just money. We’re creating a platform built to last, to lead and deliver real impact in the places that matter most.”

Paul Munn, founder of Par Equity and now executive chair of PXN Group, said: “We’ve always believed the North can produce globally significant companies – but it needs the right capital and support. PXN Group is built in the North, for the North, and this merger gives us the scale to do more of what we do best: back the most ambitious founders and help them build category-leading businesses.”

Praetura Ventures, founded in 2019, has invested in businesses such as Modern Milkman, Street Group, and AccessPay. It manages several institutional mandates, including the £100 million NPIF II North West Equity Fund for the British Business Bank and the GMC Life Sciences Fund by Praetura, supported by GMCA, Enterprise Cheshire & Warrington, and Bruntwood SciTech.

The firm also manages a range of tax-efficient investment products through its financial adviser-focused arm, Praetura Investments, including EIS and one of the UK’s first VCTs with a dedicated regional focus. These offerings aim to give advisers and their clients access to innovation-led growth outside of the South East.

Additionally, Praetura Lending channels secured lending to SMEs across the UK as part of its inheritance tax planning service. Though separate from PXN Group’s equity investments, this lending activity supports the broader mission to finance businesses in less capitalised regions.

Par Equity was established in 2008 and is recognised for its hybrid investment model combining discretionary managed funds with an extensive angel network. With offices in Edinburgh and Leeds, and investments across Scotland, Northern Ireland, and the North of England, its portfolio includes Fuuse, Recourse AI, Partful, and WaterCycle Technologies.

Par Equity also manages a top-performing EIS and Knowledge Intensive Fund and is the largest investment partner in the British Business Bank’s Regional Angels Programme. In 2023, it launched its first institutional Scale-Up Fund, raising £75 million from family offices and institutional investors.

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The firm is also involved in natural capital projects, including a mandate with Aviva Investors to deliver woodland and peatland restoration in Glen Dye Moor, West Aberdeenshire. The scheme is designed to capture 1.4 million tonnes of carbon.

Under the PXN Group brand, the combined firm will continue operating from existing offices in Manchester, Edinburgh, Leeds, and London. Existing funds and mandates will remain in place with no material changes, and the firm will maintain its regulated management structure.

PXN Group now oversees a portfolio of 115 companies. Over the next 12 months, it plans to launch new programmes and partnerships aimed at addressing regional disparities in access to capital and supporting high-growth ventures across the North of the UK.