The Evolution Technology Fund II from New York-based cybersecurity investors Evolution Equity Partners is expected to achieve a targeted £192m ($250m) final close in the coming months and is already investing in UK cybersecurity and enterprise software companies.

British Patient Capital, a wholly owned subsidiary of British Business Bank, has made a £26.9m ($35m) commitment to the fund, of which portfolio companies include Quantexa, a London based big data intelligence and risk analysis firm and Arqit, a London based cybersecurity company protecting against quantum cyber threats.

Judith Hartley, CEO, British Patient Capital, said: “The growth in cyber is being driven by several factors including the move to virtual working and an increasing demand for secure and private systems for online transacting and communications.

“Evolution Equity Partners, with a team including former CEOs and CTOs of leading cybersecurity companies, are well placed to identify and back the scale-up businesses set to capitalise on this opportunity.

“We have already worked closely with the Evolution team on one of our first co-investments – Quantexa – and I look forward to seeing how their portfolio develops as we work to achieve our vision for more home-grown fully funded companies to fulfil their potential to be players on the global stage.”

Richard Seewald, Founder & Managing Partner, Evolution Equity Partners added: “In the current environment, cybersecurity is a high priority for every organisation.

“Increased risk to corporate ecosystems, rising geopolitical risk, and a realignment of budgetary spend towards advanced security issues are all expected to increase demand – this presents significant opportunity for next generation cybersecurity companies.

“The UK is the largest, most concentrated and accessible cybersecurity market in Europe with over 1000 cybersecurity companies. It’s early growth and growth stage cybersecurity businesses are well positioned to benefit from the increased demand for cybersecurity, offering a solid pipeline for talent and investment.”