Leaders from UK Private Capital, an industry body representing British firms in the private equity market, have celebrated actions taken by the British Business Bank in support of the sector.
This week the government-owned development bank announced a £60m commitment to Manchester-based private equity firm NorthEdge’s latest fund, in line with a recent mandate to support private equity funds backing smaller businesses under its growth equity strategy.
The move was made as part of the government’s plan to grow the economy by mandating more public and private investment goes towards high-growth companies in sectors like tech.
“It is excellent to see the British Business Bank make this first cornerstone investment under its new growth equity strategy, which allows the bank to invest in private equity funds backing smaller businesses, unlocking vital scale up capital and expertise,” commented Michael Moore, chief executive of UK Private Capital.
“This change in mandate is something we have long called for. Today’s announcement builds on a series of similar recent investments by the Bank to showcase its commitment to working alongside industry to help grow and scale innovative companies in the UK.”
Formerly known as the British Private Equity and Venture Capital Association, UK Private Capital was founded in 1983 and now represents more than 600 companies.
Read more: BVCA to rebrand to UK Private Capital