The British Business Bank – the economic development bank for the UK – has announced that Aegon UK, NatWest Cushon, and M&G are the partners for the first close of the British Growth Partnership Fund I, subject to relevant approvals.
The bank is targeting a first close of £200m by end of the financial year, enabling the fund to begin investing into high growth UK companies in 2026.
All parties have completed investment diligence and are finalising terms and structuring.
The bank continues to work with other institutional 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 on-going regarding a potential investment into the fund.
Announced at the International Investment Summit in October 2024, the British Business Bank is establishing the British Growth Partnership, encouraging UK pension fund and other institutional investment into the UK’s fastest growing and most innovative companies.
The initial fund will 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 of 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,” he added.
M&G has agreed to make an investment at first close.
“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,” said Alex Seddon, head of impact and private equity at M&G Investments.
The initial fund will have a direct investing strategy, co-investing alongside the bank’s network of fund managers.
Investments from the fund will be made on a fully commercial basis, independent of government.
In addition, the bank has announced it intends to launch a Venture Link initiative for pension funds.
This will see the bank publish information on its commitments to venture funds, as part of a package of measures to help pension funds to boost their investment capability, support them as they develop their strategy, reduce barriers to investment and help to unlock more in long-term investment for UK science, technology and innovation.
The bank will now consult with stakeholders on the design of this initiative.
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