UK pension giants join forces to unlock £1bn to back Britain’s innovators

Pension fund could be used to back the next generation of high-growth British science and technology companies.

A consortium of some of the UK’s largest pension providers, today (Monday 27 July) announce their commitment to explore the establishment of a first-of-its-kind vehicle dedicated to investing in scaling UK businesses. The ambition is a fund of sufficient scale to target the best opportunities born out of UK innovation in science and technology.

The fund would seek to deliver strong long-term returns for pension providers and their members by investing in successful UK companies. By helping innovative businesses scale up, commercialise new technologies and create skilled jobs, it would support economic growth while helping pension savers benefit from larger retirement pots and stronger local economies.

By bringing together major pension investors, the UK Scale-up Fund would help connect institutional capital with the companies, founders and venture managers driving the next wave of British innovation.

As part of this initiative the British Business Bank is working alongside the pension providers to support the launch of the fund and with the intention of investing in partnership with the group. The Office for Investment is also supporting the consortium as it explores the development of the fund.

Today sends a clear message: this is a vote of confidence in British business, British talent and British ambition.