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British Business Bank makes £40m cornerstone commitment to FPE Capital’s Fund IV as part of its Growth Equity strategy to support UK smaller businesses

Press release 18 June 2026

The British Business Bank has announced a cornerstone commitment of £40m to FPE Capital’s Fund IV, to support high growth smaller businesses across the UK. The Bank previously committed £20m to FPE’s Fund II in 2017 and this latest commitment to Fund IV forms part of a first close which surpasses the total size of the predecessor fund.

This latest commitment is made under the Bank’s growth equity strategy. This expanded mandate enables the Bank to invest in lower-mid-market private equity funds backing smaller businesses that are aligned with the Government’s eight growth-driving Industrial Strategy sectors.

Operating on a fully commercial basis, the growth equity strategy aims to crowd in additional private capital to unlock scale-up finance for UK companies and strengthen regional growth across key sectors of the economy.

Founded in 2016, FPE is a specialist private equity investor that focuses on scaling B2B software, data and software services businesses. It typically invests in companies across the UK and Ireland with enterprise values of £10m-£75m. This fund will continue to target founder-led businesses, often as the first institutional investor. FPE will also use its specialist knowledge, expertise and network to help its concentrated portfolio of companies to scale.

Adam Kelly, Managing Director and Co-Head of Funds, British Business Bank said:

There is a significant funding gap in the lower-mid-market, particularly for those smaller businesses that have outgrown early-stage funding. FPE is helping to address this by providing a flexible solution for businesses at a critical stage of their growth journey. By backing firms like FPE through our expanded mandate, the Bank is increasing the supply of capital available to UK businesses ready to move into their next phase of growth.

Blair McDougall, Minister for Small Business and Economic Transformation said:

Through our Modern Industrial Strategy, we are unlocking the investment high-growth firms need to thrive and compete from the UK.

This support is focused on the most ambitious SMEs in key sectors, enabling them to scale up, create high-quality jobs and power growth, and raise living standards across the UK.

Richard Coldwell, Investment Director, Funds, British Business Bank said:

FPE is a specialist growth investor with a strong track record in scaling UK software, data and software services businesses. The Bank’s commitment will ensure that growth capital is channelled to high potential companies entering the next stage of their growth journey. By focusing on the Digital and Technology, and Professional and Business Services sectors of the Industrial Strategy, FPE will contribute to creating high-value jobs and driving economic growth across UK.

Further Information

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Notes to editors

About the British Business Bank

The British Business Bank is the UK government’s economic development bank. Established in November 2014, its mission is to drive economic growth by helping smaller businesses get the finance they need to start, scale and stay in the UK. In doing so, we help capture the economic value of innovation for the UK and create jobs and prosperity for people across the country.

The British Business Bank’s core programmes support £23bn 1  of finance to almost 64,000 2  smaller businesses.

British Business Bank plc is a public limited company registered in England and Wales, registration number 08616013, registered office at Steel City House, West Street, Sheffield, S1 2GQ. It is a development bank wholly owned by HM Government. British Business Bank plc and its subsidiaries are not banking institutions and do not operate as such. With the exception of BBB Investment Services Limited they are not authorised or regulated by the Prudential Regulation Authority or the Financial Conduct Authority. BBB Investment Services Limited is authorised and regulated by the Financial Conduct Authority. A complete legal structure chart for the group can be found at british-business-bank.co.uk.

The transaction described above does not constitute or imply any endorsement, warranty or recommendation by the UK government, the British Business Bank plc, its subsidiaries or any other party in respect of FPE Capital LLP or its products or services.

About FPE Capital LLP

FPE Capital LLP (‘FPE’) is a specialist private equity investor focused on the software, data and services sectors. It invests in lower mid-market UK and Ireland headquartered software and services companies with advantaged business models that offer significant growth potential in large markets that are undergoing structural change. FPE is authorised and regulated by the Financial Conduct Authority.

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