UK Pension Giants Explore £1 Billion Fund for Scale-Up Companies

• Major UK pension providers are exploring the establishment of a new UK Scale-up Fund.
• The fund aims to reach over £1 billion to invest in high-growth British science and technology companies.
• The initiative seeks to increase UK growth capital and provide pension savers with greater access to returns from successful UK firms.
• The British Business Bank is supporting the launch and intends to invest in partnership with the group.
• The Office for Investment is also assisting the consortium.

Major UK pension providers are collaborating to explore the establishment of a new UK Scale-up Fund, with the ambition of raising over £1 billion to invest in the next generation of high-growth British science and technology companies. This initiative aims to increase the availability of growth capital within the UK and provide pension savers with greater access to returns generated by successful domestic firms.

The fund intends to help the UK's most promising innovators scale more rapidly, commercialize breakthrough technologies, and create skilled jobs across the country. By pooling capital from major pension investors, the UK Scale-up Fund seeks to connect institutional investment with the companies, founders, and venture managers driving British innovation.

The British Business Bank is working alongside the pension providers to support the fund's launch and has expressed an intention to invest in partnership with the group. The Office for Investment is also providing support to the consortium as it develops the fund. Prime Minister Andy Burnham described the initiative as a vote of confidence in British business and ambition, aimed at unlocking growth and creating future jobs. Business Secretary Jonathan Reynolds highlighted the ambition of pension providers as a significant vote of confidence in UK innovation, while Chancellor John Healey stated the goal is to make the UK the premier location for starting and scaling businesses with British capital, ensuring better returns for pension savers.