Salica Investments, a UK-focused investment firm, has announced the first close of its second growth debt fund.

The flagship repeat anchor investors for Fund II are the British Business Bank, which has made a £30m commitment, and West Yorkshire Pension Fund, which increased its commitment to £30m from the first fund.

The fund provides vital capital to innovative and high-growth companies across the full breadth of the UK.

Salica Growth Debt is managed by one of the UK’s most experienced teams with a combined 50 years of venture and growth debt experience.

“We’re already seeing strong institutional interest for a second close later this year, driven by Salica’s rigorous approach to deal selection, longstanding reputation and increasing investor demand for growth debt across the UK,” said David Hayers, head of growth debt at Salica Investments. 

“Our team’s track record of deploying over £500m to some of the UK’s most promising and underserved businesses demonstrates why institutional partners are doubling down on our growth debt strategy.”

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Andrew Noyons, managing partner, Salica Investments, said: “We are delighted to build on Fund I’s attractive investment performance with this larger successor fund. Furthermore, the strategy’s domestic lending focus is well aligned with the Mansion House Accord objectives to boost saver outcomes and deliver UK growth.”

Adam Kelly, managing director and co-head of funds, British Business Bank, added: “Following on from the success of Salica’s inaugural fund, which provided vital capital to high growth businesses across the UK’s Nations and regions, we are excited to continue our partnership by backing Fund II. 

“Venture debt funds like Salica’s growth debt fund can help UK businesses to achieve strong growth without reducing control of their business.”

Fund I backed a wide range of companies delivering strong realised returns at a lower risk than equity alternatives. The new fund provides senior secured loans to high-growth companies with a regional focus across the UK in software, IP-rich hardware, and advanced manufacturing sectors.

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