British Growth Partnership Fund I has achieved a first close at £200 million, with commitments from UK pension funds Aegon UK, Cushon Master Trust (Cushon), M&G, and the British Business Bank. The fund is designed to increase pension fund allocations into UK venture capital and provide access to opportunities from the Bank’s pipeline and network of over 150 funds.
British Growth Partnership Fund I is an investment vehicle designed to address structural barriers and help pension funds increase their allocations to UK venture capital. It has a direct investing strategy, co-investing alongside the Bank’s network of fund managers, with investments made on a fully commercial basis independent of government. The fund will invest in a range of high growth UK companies using the Bank’s market access and position as a late-stage investor into UK companies and investor in venture and venture growth capital funds.
The fund has secured commitments from three UK defined contribution pension schemes and master trusts, including Aegon UK and Cushon, marking their first investments into UK venture capital. The Bank has partnered with Mobius to facilitate the Cushon investment through a unit-linked structure.
British Growth Partnership Fund I will make its first investment of £8 million into Wayve, contributing to the Bank’s £25 million investment announced in February. The Bank is continuing discussions with prospective investors ahead of a final close and is developing further products to support pension fund access to venture capital.
British Business Bank has also launched Venture Link, an online portal providing visibility into its investments into venture and venture growth capital funds that remain open for investment. The initiative is intended to support institutional investors in navigating opportunities and reducing barriers to investment into UK science, technology and innovation.
This is a defining moment for the Bank and is a major step forward in mobilising UK pension fund capital into venture. The UK has the world’s third largest venture capital market, yet pension fund capital has historically been deeply underrepresented. To maximise the value of great British innovation, we must bridge the gap between the UK’s large domestic savings pool and our fast-growing companies. 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.
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.
Unlocking pension capital into high-growth technology companies is critical if the UK wants to lead in 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.
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.
