In the latest development, BPC has reached total commitments of over £1 billion. On top of that, other institutions joined alongside committing £4.8 billion, bringing the total to £5.8 billion.
11 new commitments
In its second year, the subsidiary of British Business Bank made 11 new commitments with a total value of £405 million in the 2019/20 financial year. The total value of portfolio commitments reached £1,004 million across 42 funds.
According to BPC, the companies under its portfolio fall into one of eight themes:
- Future of work and education (19%)
- Marketplaces and consumer (18%)
- Digital health and life sciences (15%)
- Big data and AI (13%)
- Fintech (13%)
- Clean growth, sustainability, and mobility (9%)
- Cybersecurity (5%)
- Frontier tech (5%)
Some of the notable investments are Atomico (£39M), Balderton Capital (£35M), and a cornerstone investment to SV Health Investors’ first dedicated biotech fund (£50.3M).
Judith Hartley, the CEO, British Patient Capital, said: “During the 12 months to March 2020, British Patient Capital made 11 commitments to new venture and venture growth funds, increasing our total fund investments to 42. In terms of the investment amount, we committed £405m in the year to March 2020, taking our total commitments to just over £1bn. This is a clear demonstration of the scale at which we can now deploy capital and a reflection of the market opportunity.
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£1.5B still to be deployed
The total portfolio Internal Rate of Return was 10.7%, claims British Patient Capital. The number of underlying companies within BPC’s portfolio increased from 322 to 503 in a year.
Russ Cummings, Chair, British Patient Capital, said: “Our long-term vision is for more home-grown and fully funded, high growth companies to fulfil their potential to be players on the global stage. By increasing the availability of patient capital to our high-growth businesses, we fuel innovation, heighten ambition, and power economic growth.”
He adds, “As we adapt to the impact of COVID-19, breakthrough innovations based on digitisation, deep technology, and life sciences are set to create a wave of transformative, high-growth companies. With many world-class universities, a strong track record in science and research, and a technology sector now regularly producing global champions, the UK is well-positioned to be a leader of this wave. With £1.5b still to be deployed, it’s the long-term patient capital that we and others provide that will fuel innovation, and power economic growth.”