Yesterday during the UK International Investment Summit, the government announced multiple new investments as well as new initiatives. The British Business Bank, a public-private vehicle designed to support UK firms, commented on some of the announcements.
Louis Taylor, CEO of the British Business Bank, said they welcome the statements by the Chancellor of the Exchequer and Secretary of State for Business and Trade that the British Business Bank will establish the British Growth Partnership. The goal is to encourage more pensions to invest in smaller firms.
“These companies have the potential to drive productivity, jobs and growth, and will support the UK to be internationally competitive in the industries of the future. By unlocking hundreds of millions of pounds of domestic investment for the UK’s high-growth businesses through the creation of the British Growth Partnership, the UK can capture the full commercial potential of its world-class breakthrough technology companies, providing a legacy for future generations of pensioners,” said Taylor. She also acknowledged the implementation of changes that pub the Bank’s £7.9 billion of commercial programmes as permanent. This means the Bank can flexibly re-invest its investment returns over the long term to increase growth and prosperity across the UK. This announcement is a strong endorsement of the British Business Bank’s 10-year track record, market access and capabilities including our position as the UK’s largest domestic investor in venture and venture growth capital and the most active late-stage investor in UK life sciences and Deeptech.”
Taylor said they welcome the transformation of the UK Infrastructure Bank into the National Wealth Fund, which will work in partnership with the National Wealth Fund to deliver the Government’s mission.
The British Growth Partnership, subject to regulatory approval, aims to boost pension funds and other institutional investment participation in venture capital funds and innovative businesses.
The British Business Bank noted that it recently awarded £250 million under the Long-Term Investment for Technology and Science (LIFTS) initiative to Schroders Capital (£150m) and ICG plc (£100m), which are expected to create two new investment vehicles accessible to pension funds and other institutional investors.
Schroders Capital and ICG plc are expected to begin making investments via their new vehicles in late 2024.
Dame Julia Hoggett, CEO of London Stock Exchange Plc, voiced her support of the programs:
“It is critically important for the growth of the UK economy that homegrown companies are able to access the investment they need to grow, scale, and stay in the UK. Access to meaningful UK capital at the scaling phase has been a long-recognised challenge and so we are delighted that British Growth Partnership is being established to help address this problem. This will also facilitate more investment by UK pension schemes into scaling UK companies, providing greater returns for their savers and giving UK investors a greater stake in the UK economy.”
Executive Director of Startup Coalition Dom Hallas said that tech startups and scaleups need a stable funding environment to compete globally, adding that the announcement will help the UK continue to build VC-backed tech companies across the country.