British Business Bank Responds to the Chancellor’s Mansion House Speech

British Business Bank has responded to the Mansion House speech given by the Chancellor of the Exchequer, the Rt Hon Rachel Reeves MP, on Thursday (14th November) evening.

Below they detail their responses to the announcement of the British Growth Partnership (BGP) and Long-Term Investment for Technology and Science (LIFTS).

British Growth Partnership (BGP)

At Thursday night’s Mansion House speech, the Chancellor of the Exchequer, the Rt Hon Rachel Reeves MP, announced that Aegon UK and NatWest Cushon, have agreed to work with the new British Growth Partnership with a view to making investments in the initial fund, as the Partnership prepares for launch in 2025, subject to regulatory approval. 

Announced at the International Investment Summit, the Bank will establish the British Growth Partnership, subject to regulatory approval, encouraging more UK pension fund and other institutional investment into the UK’s fastest growing, most innovative companies. The initial fund will seek to raise hundreds of millions of pounds, including a commitment from the British Business Bank, to invest in some of the highest potential opportunities in the Bank’s venture capital pipeline.

Aegon UK, a DC pensions provider with £216bn AUA, has agreed to partner with the Bank on the launch of the British Growth Partnership, with a view to making a substantial cornerstone investment in the initial fund when launched, subject to completing commercial negotiations and regulatory and due diligence processes.

NatWest Cushon, a pensions and savings provider with a DC master trust with £2.8bn AUM has committed to work with the Bank on the launch of the British Growth Partnership, with a view to the Cushon Master Trust making an investment in the initial fund subject to completing commercial negotiations, regulatory, and due diligence processes, and agreement from the trustees. 

Both partners have also committed to continued collaboration with the Bank to provide input into the development of further products that access high quality investment opportunities in UK growth assets.

Please see the full press release here.

Long-Term Investment for Technology and Science (LIFTS)

The Bank has completed its £250m investment alongside Phoenix Group with Schroders Capital under the Long-Term Investment for Technology and Science (LIFTS) initiative to create a new investment vehicle that is accessible to pension funds and other institutional investors.

The Bank has completed its £250m commitment to the fund, which will be matched by £250m of pension investment from Phoenix Group, the UK’s largest long-term savings and retirement business, creating a £500m investment vehicle. Phoenix’s investment will be made through its new private markets joint venture with Schroders, Future Growth Capital.

Following approval from the UK’s Financial Conduct Authority in September to launch the first ever Long-Term Asset Fund (LTAF) dedicated to UK venture capital, Schroders Capital, the $97.3bn specialist private markets business, is expected to begin making investments before the end of the year.

The LTAF will offer defined contribution and other institutional investors the opportunity to participate in the growth and development of groundbreaking UK late-stage companies focused on technology and science with 20% of the fund expected to be invested in life sciences.

This investment builds further on the Bank’s support for UK life sciences through its £200m Life Sciences Investment Programme and its £425m Future Fund: Breakthrough programme which invests in R&D intensive companies, including in deeptech and life sciences. At Autumn Budget, the Chancellor announced that both programmes would be extended.

Please see the full press release here.