Frequently asked questions

Yes. We welcome applications from prospective managers who meet our access to capital indicators:

• limited access to finance
• limited access to LP networks

These indicators help identify individuals who may face barriers to entering the industry, including - but not limited to - those from underrepresented groups such as women, ethnic minorities, people from lower socio-economic backgrounds, or those with disabilities. While these groups are more likely to experience such barriers, our application process focuses on access indicators, not diversity characteristics.

The British Business Bank will typically commit up to 50% of the total fund size. For example, for a £5 million fund, the Bank would commit £2.5 million. Any request above this threshold will be considered on a case-by-case basis, provided it aligns with the proposed fund strategy. Prospective managers are expected to propose the percentage of Bank commitment they require in their Application Form. 

No. You do not need to have matched funds secured before applying. We recognise that our target applicants may have limited access to LP networks, so we have an internal workstream dedicated to mobilising a pool of LPs to support the microfunds we back. If you already have soft commitments or are in conversations with other LPs, you are welcome to include this in your application, but it is not a prerequisite.

Full FCA permissions are not required at the time of application, but we do expect applicants to have considered how they would obtain the necessary approval. We also have an internal workstream developing a “plug and play” operational framework for microfunds supported through this initiative. This will provide access to a set of pre-approved fund service providers to assist with fund setup.

The initiative requires each microfund to deploy at least 65% of its total capital commitment into UK-based businesses. Exceptions to this threshold will be discussed and evaluated on a case-by-case basis and in line with the proposed investment strategy. 

No, microfund managers are not required to make a GP (General Partner) commitment. This initiative is designed to lower barriers to entry, so a personal financial contribution from managers is not expected. If you choose to provide a GP commitment, you may do so, but it is entirely optional and will not influence our evaluation or decision-making. 

Yes. We welcome and actively encourage applications from solo GPs as well as small teams. Being a solo manager does not disadvantage your application, and we understand that many microfunds operate with lean teams. 

Yes, you may still apply. However, as the initiative targets individuals with limited access to finance and LP networks, applications from funds that have already completed a first close may not align as closely with the initiative’s objectives and will be considered in a competitive context. 

No, the initiative is agnostic regarding region or sector. Fund proposals must, however, be commercially viable, with a clear investment strategy, capable team, relevant track record, and appropriate terms – with all elements combining to form a compelling and credible proposal. 

We anticipate running cohorts twice a year (every six months). However, the exact schedule will be finalised based on demand observed from the first cohort. 

Prospective Managers should be transparent about external commitments, whether professional, advisory, or otherwise, and outline how potential conflicts of interest will be managed. While the Investor Pathways Capital Team recognises that first-time fund managers may balance multiple responsibilities, it is essential to demonstrate that sufficient focus and commitment will be dedicated to managing the Microfund and supporting portfolio companies. 

We generally define a first-time fund manager as someone raising their first institutional fund. However, we recognise that some prospective managers may have previously raised a small fund, micro-fund, SPV, or other investment vehicle that did not provide the full experience, scale, or access typically associated with an established fund manager. For this reason, we will consider second-time managers on a case-by-case basis. If you have raised a prior vehicle but can demonstrate that you continue to face structural barriers to market access, we may still regard you as effectively “first-time” for the purposes of this initiative. 

Prospective managers may also wish to explore the support available through the Enterprise Capital Fund (ECF) programme, which provides another potential route for emerging managers. Further information is available on the ECF landing page.

GP/LP structure is a widely used structure for funds that are managed by professional fund managers on behalf of ‘passive’ third-party investors. This structure enables us to assess fund managers on a consistent basis and ensures that all participating funds meet the standards necessary for public investment. The initiative is designed to support first-time managers in establishing institutionally robust fund structures, helping them build a track record that will enable future scaling.