The British Business Bank has announced that Aegon UK, NatWest Cushon and M&G are the partners for the first close of the British Growth Partnership Fund I.
The Bank is targeting a first close of £200m by the end of the financial year, enabling the fund to begin investing into high growth UK companies in 2026.
All parties have now completed investment diligence and are finalising terms and structuring.
The Bank continues to work with other investors, including London CIV. In May, London CIV became the first LGPS pool to announce its intention to work with the Bank on the launch of the British Growth Partnership, and discussions are ongoing regarding a potential investment into the fund.
Announced at the International Investment Summit, the British Business Bank is establishing the British Growth Partnership, encouraging more UK pension fund and other institutional investment into the UK’s fastest growing, most innovative companies.
The initial fund will seek to raise hundreds of millions of pounds, including a commitment from the British Business Bank, to invest in some of the highest potential opportunities in the Bank’s venture capital pipeline.
“Today’s announcement brings us one step closer to mobilising institutional capital at scale into the UK’s fastest growing companies, both diversifying pension portfolios and providing much needed scale up funding,” said Louis Taylor, CEO, British Business Bank (pictured).
“The British Growth Partnership will provide access to the Bank’s live pipeline of scale up businesses, providing a vital bridge between institutional investors and the UK’s thriving venture capital sector.
“We are making strong progress with our initial fund and this news demonstrates the appetite across the full spectrum of pension funds to increase allocations to UK venture capital.”
M&G, an international leader in savings and investments with £365bn in assets under management, has agreed to partner with the British Business Bank on the launch of the British Growth Partnership, with a view to making an investment at first close, subject to finalising terms and structuring.
Alex Seddon, head of impact and private equity, M&G Investments, said: “We’re delighted to be partnering on this important UK growth initiative. Our commitment will build on the £100 billion we already invest in the UK economy and power up the next generation of high growth UK companies.
“Britain’s businesses need patient capital to truly scale. By attracting more investment, the British Business Bank is taking a major step to drive dynamic growth and strengthen the UK’s position as a leading hub for innovation.”
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