The British Business Bank has announced that Aegon UK, NatWest Cushon and M&G are the partners for the first £200m close of its new Growth Partnership Fund I.
Having completed their investment diligence, the parties are now finalising terms and structuring ahead of the bank’s first close, which it hopes to secure by the end of the financial year, enabling the fund to start backing high-growth UK firms in 2026.
“Today’s announcement brings us one step closer to mobilising institutional capital at scale into the UK’s fastest growing companies, both diversifying pension portfolios and providing much needed scale up funding,” said British Business Bank chief executive Louis Taylor.
“The British Growth Partnership will provide access to the Bank’s live pipeline of scale up businesses, providing a vital bridge between institutional investors and the UK’s thriving venture capital sector.
“We are making strong progress with our initial fund and this news demonstrates the appetite across the full spectrum of pension funds to increase allocations to UK venture capital.”
The British Growth Partnership, first announced at the International Investment Summit, is part of the bank’s ambition of encouraging more pension capital to go toward fast growing innovation-based companies.
“As a signatory to both the Mansion House Compact and the Accord, we’re committed to directing investment into innovative, high-growth UK businesses and impact led sectors to deliver better outcomes for our pension savers whilst also supporting the UK’s growth ambitions,” said a spokesperson for NatWest Cushon.
“The British Growth Partnership is a vital step forward to unlocking these investment opportunities. The investment due diligence is complete, and we are excited to move forward subject to Trustee approval.”
The British Business Bank continues to work with other investors, including the Local Government Pension Scheme London CIV.