Enterprise Ventures (EV), an investor group focused on the North of England, is to exit from its investment in H2O Networks after achieving a 3.6 times return on its original investment – an IRR of 142 per cent.”

Enterprise Ventures (EV), an investor group focused on the North of England, is to exit from its investment in H2O Networks after achieving a 3.6 times return on its original investment.

The investor group made its initial investment in H2O Networks in September 2006, with a further funding in mid 2007 to support development. The investments were made through its Coalfields Enterprise Fund, which is managed on behalf of the Department for Communities and Local Government.

It is unknown how much EV will raise following the disposal.

Richard Bamford, EV executive chairman, said: “On behalf of our client, we are extremely pleased to have achieved such an excellent outcome, which demonstrates that, even during these very difficult recessionary times, there are high-growth investment opportunities in the regions.”

North West-based H2O Networks has grown from providing point-to-point fibre optic services for businesses to building town- and city-wide networks, as seen in Dundee and Bournemouth, as well as international activities.

The Coalfields Enterprise Fund is a commercial venture capital fund set up to support the growth of businesses and encourage entrepreneurship in England’s former coalfields. The objective of the fund is to bring more than £20 million of new investment into these areas and stimulate business start-ups, established businesses seeking to expand and industrial diversification.