Major UK pension providers are exploring the creation of a UK Scale-up Fund worth more than £1 billion to support high-growth science and technology companies.
The consortium announced its commitment to examine the first-of-its-kind investment vehicle on Monday. The proposed fund would be dedicated to scaling UK businesses and is intended to increase domestic growth capital.
According to the government, the fund would aim to back promising companies born from British innovation, helping them scale faster, commercialise breakthrough technologies and create skilled jobs across the country.
The proposal is also intended to give pension savers greater access to returns from successful UK companies. The fund would seek strong long-term returns for pension providers and their members by investing in firms judged to have strong growth prospects.
The British Business Bank is working alongside the pension providers to support the launch of the fund, with an intention to invest in partnership with the group. The Office for Investment is also supporting the consortium as it explores development of the vehicle.
Ministers said the plan would connect institutional capital with companies, founders and venture managers involved in British innovation. The announcement was presented as part of a wider effort to support business growth, investment, jobs and skills across UK regions.