Edinburgh-founded Par Equity and Manchester-based Praetura Ventures are to merge to create PXN Group, a new venture capital and investment firm with over £670 million in assets under management.

Par Equity and Praetura are two of the most prominent investors in the North of England, Scotland and Northern Ireland.

With more than 80% of UK venture capital still concentrated in London and the south east of England, the creation of PXN Group will help build companies in other parts of the country.

PXN Group has been designed to drive more capital into the hands of promising founders in the North of the UK, through a venture programme that supports founders as they scale.

PXN Group will be capable of providing equity investments from £200,000 to £8 million, across multiple sectors and growth stages – from seed to scale.

“As a combined entity, PXN Group will be the fastest-growing venture and investment firm outside of London and the South East, with both Praetura Ventures and Par Equity more than tripling their assets under management since 2021,” said Praetura.

“The merger, which is subject to regulatory clearance from the Financial Conduct Authority, will bring together Edinburgh-founded Par Equity and Manchester-based Praetura Ventures, two firms known for backing early-stage and scale-up businesses outside of London and the South East.

“By joining forces, PXN Group will 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.”

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.”

Par Equity, launched in 2008, has a strong presence across Scotland, Northern Ireland, and the North of England, and its investments include notable success stories such as Current Health, DeltaDNA, Symphonic Software, Optoscribe, Dukosi, QikServe, and ICS Learn.

Par Equity is also active in natural capital investing. This includes a mandate with Aviva Investors to create a woodland and peatland restoration scheme in the Glen Dye Moor area of West Aberdeenshire, Scotland, to capture 1.4 million tonnes of carbon.

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

Under the new PXN Group brand, both teams will continue to operate from their existing offices in Manchester, Edinburgh, Leeds, and London. The firm’s regulated management businesses will continue managing existing funds and mandates with no material changes.

The transaction has not yet been completed and is subject to approval from the Financial Conduct Authority.