Aegon and the Natwest Cushon master trust have finalised investments in the British Growth Partnership Fund, contributing to a £200m capital raise for the venture capital vehicle.
The fund, backed by the British Business Bank, has also attracted investment from M&G. The three investors are also signatories to the Mansion House Accord.
It marks the first time that the British Business Bank has raised external capital from multiple investors. In a statement this morning, the bank said the investors now had access to its pipeline of opportunities and 150-strong network of venture capital funds.
The bank said it was targeting a further final close “in due course” and was continuing to engage with other prospective investors.
Veronica Humble, chief investment officer at NatWest Cushon, said: “We’ve been working with the British Business Bank for a while to get to this point and so it’s great to be part of this important milestone. As a signatory to both the Mansion House Compact and the Accord, we’re committed to directing investment into innovative, high-growth UK businesses to drive long-term returns for our customers, and the British Growth Partnership is vital to unlocking these investment opportunities.”
Lorna Blyth, managing director for investment proposition at Aegon UK, said its allocation was “an important step in the evolution of our largest workplace default fund” as it granted members access to assets “that have typically been out of reach for DC pension savers”.
‘Defining moment’ for British Business Bank
Louis Taylor, chief executive of the British Business Bank, said the first close of the fund was “a defining moment for the bank” and “a major step forward in mobilising UK pension fund capital into venture”.
Ian Connatty, managing partner at the British Growth Partnership, added: “Pension funds have long recognised the strength of UK venture capital, but structural barriers have limited their access to the market.
“By bringing together leading pension funds and deploying capital at speed, British Growth Partnership Fund I demonstrates how these barriers can be overcome and provides a blueprint for others to follow. We will be building on this momentum in the year ahead.”
“By starting to overcome the long‑standing structural barriers to venture capital investment, initiatives like the British Growth Partnership are helping pension schemes to access attractive long-term opportunities while supporting innovative UK businesses to scale.”
Zoe Alexander, Pensions UK
The new fund allocates capital through co-investments alongside the bank’s network of fund managers. Alongside the new fund, the British Business Bank announced the launch of Venture Link, an online portal providing insights into the bank’s venture and venture growth capital funds to help institutional investors assess opportunities.
Taylor added: “The bank is stepping up to provide pension funds with routes into the market, whether that is with us through the British Growth Partnership or alongside us via Venture Link. The launch of these initiatives represents a key milestone in delivering the Mansion House reforms and will help pension funds to access outstanding new opportunities on their doorstep.”
Pensions UK highlights progress on Mansion House goals
Zoe Alexander, executive director of policy and advocacy at Pensions UK, took the opportunity to highlight the link to the Mansion House Accord.
Alexander said the appetite for the British Growth Partnership Fund “demonstrates clearly that pension funds are making real progress” towards the Accord’s goals.
“By starting to overcome the long‑standing structural barriers to venture capital investment, initiatives like the British Growth Partnership are helping pension schemes to access attractive long‑term opportunities while supporting innovative UK businesses to scale,” she said. “That is good for savers, good for the economy and exactly the kind of momentum the accord was designed to create.”
Pensions UK and other trade bodies have been battling the government over much of the past year in opposition to the mandation clause in the Pension Schemes Bill, which targets domestic investment by UK DC master trusts.
Makings Wayves in VC
The new British Growth Partnership Fund has also announced its first investment, an £8m commitment to autonomous driving company Wayve.
Alex Kendall, co-founder and CEO of Wayve, said: “Unlocking pension capital into high-growth technology companies is critical if the UK wants to lead in artificial intelligence (AI). This investment shows how long-term capital can support long-term innovation, helping companies like Wayve scale embodied AI globally while delivering meaningful economic and societal impact.”
Alex Seddon, head of impact and private equity at M&G Investments, added: “Initiatives like the British Growth Partnership are critical to unlocking and supporting the next phase of innovation, productivity and jobs across the UK. Investing in Wayve highlights the kind of high-growth British companies this initiative is designed to back – and the role patient capital can play in helping them to scale.”
Chancellor Rachel Reeves said: “Our pension savers want to back Britain and want their pensions to benefit from the growth in our world-class innovation economy. The British Growth Partnership is doing that, and helping great British tech success stories like Wayve hold their own on the global stage. We are making it easier for businesses like Wayve to start, scale and stay in the UK.”
