London CIV first pool to announce intention to work with the British Business Bank on the launch of the British Growth Partnership
As part of the government’s Pensions Investment Review, London CIV has become the first LGPS pool to announce its intention to collaborate with the British Business Bank on launching the British Growth Partnership. London CIV plans to invest in the initial fund upon its launch, subject to commercial negotiations, due diligence, and agreement from client funds.
London CIV is seeking to expand its product range by adding a private equity fund. Recognising the investment potential in supporting early-stage UK growth companies, it is exploring various funds currently raising capital to invest in the UK.
London CIV joins Aegon UK and NatWest Cushon, both of whom have already agreed to work with the British Growth Partnership, with a view to investing in the initial fund.
Earlier this month, the Financial Conduct Authority granted regulatory approval to BBB Investment Services Limited—the British Business Bank’s third-party arm—allowing it to provide investment services to clients. This represents a key regulatory milestone in the preparation for the British Growth Partnership’s launch.
Announced at the International Investment Summit, the British Business Bank will establish the British Growth Partnership to encourage greater UK pension fund and institutional investment into the country’s most innovative and fastest-growing businesses. The initial fund aims to raise hundreds of millions of pounds, including a commitment from the British Business Bank, to invest in some of the highest-potential opportunities within its venture capital pipeline.
The British Growth Partnership will leverage the British Business Bank’s market access and position as the largest investor in UK venture and venture growth capital funds. Investments from the fund will be made on a long-term, fully commercial basis, independent of government, capitalising on the Bank’s expertise and ability to connect with promising high-growth UK companies.
Andrien Meyers, Chief Commercial Officer of London CIV, stated: “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 in our comprehensive process to deliver sound private equity solutions for London CIV Partner Funds—many of whom have long encouraged London CIV to explore and pursue this opportunity.”
Ian Connatty, Managing Partner at BBB Investment Services, added: “This announcement is an endorsement of the work the British Business Bank is doing to support pension funds and other institutional investors in accessing venture capital opportunities. We are delighted to be working with London CIV as we prepare to launch the British Growth Partnership, demonstrating that our objectives and vision for investing in the UK’s high-growth businesses are highly aligned.
By unlocking hundreds of millions of pounds of domestic investment for the UK’s high-growth businesses through the creation of the British Growth Partnership, the UK can capture the full commercial potential of its world-class breakthrough technology companies while providing a legacy for future generations of pensioners.”
At the International Investment Summit 2024, reforms to the British Business Bank’s financial framework were announced, placing the Bank’s £7.9 billion commercial programmes on a permanent footing. This will enable the Bank to reinvest its investment returns flexibly over the long term, fostering growth and prosperity across the UK.
