London CIV has announced its intention to work with the British Business Bank on the launch of the British Growth Partnership, an initiative aimed at encouraging more UK pension fund and other institutional investment into innovative young UK companies.
The local government pension scheme (LGPS) said it had a view to make an investment in the initial fund when launched, subject to commercial negotiations, due diligence, and agreement from client funds, as it looks to add a private equity fund to its product range.
It said it recognises the investment opportunity to support early-stage UK growth companies and as such was looking at a range of funds looking to raise capital to invest in the UK.
Aegon UK and NatWest Cushon have also said they will work with the British Business Bank on the initiative with a view to making investments in the initial fund when launched.
Earlier this month, the Financial Conduct Authority granted regulatory approval to British Business Bank’s third-party arm BBB Investment Services, which was branded an important first regulatory step in the preparation for the launch of the British Growth Partnership.
The initial fund will seek to raise hundreds of millions of pounds, including a commitment from the British Business Bank, to invest in some of the highest potential opportunities in the bank’s venture capital pipeline.
Andrien Meyers, chief commercial officer, London CIV, said: “London CIV’s goal continues to be developing investment solutions that reflect the evolving needs of our partner funds, particularly in areas such as private equity, where demand continues to grow.
“This is a highly positive step as part of our comprehensive process to deliver sound private equity solutions for London CIV Partner Funds – many of whom have lobbied London CIV to explore and pursue for some time.”
Ian Connatty, managing partner at BBB Investment Services said London CIV’s announcement was “an endorsement of the work the British Business Bank is doing to support pension funds and other institutional investors to access venture capital opportunities”.
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