A consortium of some of the UK’s largest pension providers have committed to exploring the establishment of a first-of-its-kind vehicle dedicated to investing in scaling UK science and technology businesses.
The potential £1 billion fund would seek to deliver strong long-term returns for pension providers and their members while also helping innovative businesses to scale and commercialise new technologies.
Among the pension providers are Railpen, Nest, LPPI, LGPS Central and Border to Coast.
The British Business Bank is working alongside them to support the launch of the UK Scale-up Fund and with the intention of investing in partnership with the group. The Office for Investment is also supporting the consortium.
Prime Minister Andy Burnham said: “Today sends a clear message: this is a vote of confidence in British business, British talent and British ambition.
“This new fund would help unlock good growth in every postcode, connecting pension investment with the entrepreneurs and technologies that will reindustrialise Britain and create the jobs of the future.
“That means more opportunities for working people, stronger returns for savers, and more businesses choosing to start, grow and stay in Britain.”
Andy Bord, Railpen’s CEO, echoed the sentiments of the other pension provider leaders when he said: “The UK is a dynamic powerhouse of innovation. The UK Scale-up Fund represents a compelling investment opportunity where disciplined, patient capital can help growing companies scale, provide attractive returns for pension savers and generate lasting economic growth.
“We are pleased to have helped shape this initiative, which will play a vital role in supporting ambitious companies with global reach to build their future here in the UK, creating a stronger economy for our members to retire into.
Leandros Kalisperas, chief investment officer at the British Business Bank, added: “Today’s announcement is an important milestone in strengthening the UK’s capital formation ecosystem.
“By bringing together long-term pension capital with the UK’s most ambitious growth businesses, we have the opportunity to create a virtuous cycle—supporting innovation, attracting further private investment, and delivering strong long-term outcomes for pension savers.”
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