London CIV, the investment pool for the London Local Government Pension Scheme (LGPS), has become the first LGPS pool to announce its intention to work with the British Business Bank on the launch of the British Growth Partnership.
This commitment has been made with a view to invest in the initial fund when launched, subject to commercial negotiations, due diligence, and agreement from client funds.
This is in part because the London pool is looking to add a private equity fund to its product range.
It said it recognises the investment opportunity to support early-stage UK growth companies, and as such, is looking at a range of funds that look to raise capital to invest in the UK.
London CIV joins Aegon UK and NatWest Cushon who have agreed to invest in the initial fund.
Earlier this month the Financial Conduct Authority granted regulatory approval to BBB Investment Services, the British Business Bank’s third-party arm, to provide investment services, an important first regulatory step in the preparation for launch of the British Growth Partnership.
Announced at the International Investment Summit held in London in October last year, the British Business Bank is set to establish the British Growth Partnership, with the aim of encouraging more UK pension funds, and other institutional investors, to back the UK’s fastest growing and 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.
Andrien Meyers, chief commercial officer at London CIV (pictured), said: “London CIV’s goal continues to be developing investment solutions that reflect the evolving needs of our partner funds, particularly in areas such as private equity where demand continues to grow.”
Meyers added: “This is a highly-positive step as part of our comprehensive process to deliver sound private equity solutions for London CIV partner funds – many of whom have lobbied London CIV to explore and pursue for some time.”
Ian Connatty, managing partner of BBB Investment Services, also added: “This announcement is an endorsement of the work the British Business Bank is doing to support pension funds and other institutional investors to access venture capital opportunities.”
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