The FSE Group has launched the Future London Growth Fund, a new debt fund expected to deliver more than £70 million of lending to ambitious scale-up businesses across London’s 32 boroughs and the City of London. Cornerstone commitments come from British Business Bank, which has committed £20 million, and the Mayor of London’s investment arm, Funding London, which invested through its investment entity, GLIF Limited, as part of the Mayor of London’s ambition to support economic growth through the London Growth Plan.
Offering loans ranging from £1 million to £3 million, the fund is intended to address the gap between bank finance and larger-scale venture debt. Its focus is on founders and businesses that may be overlooked or underserved by traditional finance providers, supporting companies with strong commercial traction and credible plans to scale. These businesses might not yet be profitable but are expected to achieve profitability as their growth plans are delivered.
Despite London’s position as one of the world’s leading financial centres, gaps in access to growth finance remain a challenge for many smaller businesses across the capital. Research from the British Business Bank’s Alone Together report found that London was the toughest place in the UK to be an entrepreneur, with 71% of business owners reporting a profit, compared with the UK average of 84%. The report also highlighted that entrepreneurs operating in economically deprived urban areas can face additional barriers to finance and business success.
The FSE Group has managed the £66 million debt portion of Funding London’s Greater London Investment Fund since 2019. Beyond London, it manages part of the British Business Bank’s South West Investment Fund, Investment Fund for Scotland and Midlands Engine Investment Fund, and was recently appointed manager of the South East Investment Fund (Debt). Led by CEO Julie Silvester, FSE manages approaching £460 million of funds and has supported over 1,000 scaling businesses across sectors including tech and digital, clean energy and advanced manufacturing.
London is the best city in the world to start and grow a business, but too often many are overlooked by traditional finance providers. As a key commitment of my London Growth Plan, the Future London Growth Fund directly targets that funding gap and will provide a huge boost to businesses looking to scale up, helping them accelerate development and create new jobs. Delivering millions of pounds of support, the Fund will enable businesses to innovate and expand, bringing lasting economic impact as we continue to build a better, more prosperous London for everyone.
We are delighted to be launching the Future London Growth Fund to aid businesses with high growth potential across the capital. At The FSE Group, our core mission is to unlock potential in scaling businesses that traditional finance often overlooks. Providing flexible, relationship-led capital gives ambitious management teams the freedom to innovate and create high-quality jobs. The Future London Growth Fund is a direct continuation of that ethos, providing the tailored support scaleups need to execute their next phase of expansion.
London is home to an exceptional community of high-growth, innovative businesses, yet many still hit a barrier when accessing scale-up capital. Building on our proven track record, this new fund addresses that gap, providing debt finance to exciting and growing businesses across the capital. We are thrilled to bring dedicated finance to London’s founders to facilitate their growth and deliver long-term economic impact.
It can be easy to assume that businesses in London have access to all the finance they need, but that isn’t the reality for many ambitious founders across the capital. Smaller businesses operating in underserved communities, or those without established investor networks, can still struggle to secure the growth capital they need to scale. Our £20 million cornerstone commitment to the Future London Growth Fund will help address that gap, increasing the availability of finance for businesses with strong growth potential and supporting economic opportunity across London’s diverse communities.
