A £125M “super fund” will be officially launched today, aimed at supporting hundreds of businesses and creating thousands of jobs to help the North-East’s economic recovery.

The Finance for Business North-East Fund will be unveiled by MP Rosie Winterton, Minister for Regional Economic Development and Coordination, to scores of businesses at an event at Ramside Hall Hotel, near Durham.

The new fund – formerly called Jeremie – will underpin the growth of business startups, technology-based companies and growing smaller businesses, helping to create jobs and prosperity for the region through targeted loans and equity investments.

Over the next five years, it will support up to 850 small and medium-sized North-East companies, with the aim of creating more than 5,000 jobs.

Ms Winterton said: “The recent economic situation has had a significant impact on the people and businesses of the North-East. This venture capital fund is a key part of getting critical help to small and medium sized businesses to invest in the recovery.

“Along with other Government measures, this will help ensure the region’s economic prosperity, helping hundreds of businesses and creating thousands of jobs.”

Senior representatives from the European Investment Bank – which is committing £62.5m – and the European Commission, will also address the audience, outlining the importance of their investment into the first fund of its type in England.

Malcolm Page, deputy chief executive of One North East, which led the creation of the fund, said: “The fund represents an exciting new era in publicly-backed venture capital in our region.”

Stephen Langley, of the, UK Unit, European Commission, said: “I very much welcome the fact that the North-East partners have seized European Union funding opportunities to set up a range of financial instruments of such value and significance for the regional economy.”