Some of the UK’s largest pension providers are supporting a £1 billion first-of-its-kind fund dedicated to investing in scaleup businesses.
By bringing together major pension investors, the UK Scale-up Fund would help connect institutional capital with the companies, founders and venture managers driving the next wave of British innovation.
As part of the initiative the British Business Bank is working alongside the pension providers to support the launch of the fund and with the intention of investing in partnership with the group.
The Office for Investment is also supporting the consortium as it explores the development of the fund.
The pension providers represent defined contribution, defined benefit and Local Government Pension Scheme funds.
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.”
Business, Innovation, Science and Trade Secretary Jonathan Reynolds added: “Britain leads the way in science, technology and innovation, and we want to ensure more of our most promising businesses can start, scale and succeed here in the UK.”
Chancellor John Healey said: “We create great companies in Britain but don’t do enough to grow them with British capital and keep profits in the UK.
“We have the third largest venture capital market in the world and this new £1 billion fund will mean more British money to back British scale-ups and better returns for pension savers.
Rachel Elwell, chief executiveat Border to Coast, said: “By combining scale, collaboration, investment discipline, and a strong pipeline of high-quality opportunities, this initiative can help deliver attractive long-term outcomes for pension savers while enabling more innovative UK businesses to grow and compete.”
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