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British Business Bank’s British Growth Partnership announces partners for targeted £200m first close of initial fund at end of the financial year

Press release 20 November 2025

  • First close of £200m targeted by end of the financial year, enabling the initial fund to begin investing into high growth UK companies
  • British Business Bank announces Aegon UK, NatWest Cushon and M&G as its partners for the targeted first close of British Growth Partnership Fund I, subject to final terms and relevant approvals

The British Business Bank has announced that Aegon UK, NatWest Cushon, and M&G are the partners for the first close of the British Growth Partnership Fund I, subject to final terms and relevant approvals. 

All parties have now completed investment diligence and are finalising terms and structuring. The Bank is targeting a first close of £200m by end of the financial year, enabling the fund to begin investing into high growth UK companies in 2026.

The Bank continues to work with other investors, including London CIV. In May, London CIV became the first LGPS pool to announce its intention to work with the Bank on the launch of the British Growth Partnership, and discussions are ongoing regarding a potential investment into the fund.

Announced at the International Investment Summit, the British Business Bank is establishing the British Growth Partnership, 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.

Louis Taylor, CEO, British Business Bank, said: 

Today’s announcement brings us one step closer to mobilising institutional capital at scale into the UK’s fastest growing companies, both diversifying pension portfolios and providing much needed scale up funding.

The British Growth Partnership will provide access to the Bank’s live pipeline of scale up businesses, providing a vital bridge between institutional investors and the UK’s thriving venture capital sector. We are making strong progress with our initial fund and this news demonstrates the appetite across the full spectrum of pension funds to increase allocations to UK venture capital.

M&G, an international leader in savings and investments with £365bn in assets under management, has agreed to partner with the British Business Bank on the launch of the British Growth Partnership, with a view to making an investment at first close, subject to finalising terms and structuring. 

Alex Seddon, Head of Impact and Private Equity, M&G Investments, said: 

We’re delighted to be partnering on this important UK growth initiative. Our commitment will build on the £100 billion we already invest in the UK economy and power up the next generation of high growth UK companies.

Britain’s businesses need patient capital to truly scale. By attracting more investment, the British Business Bank is taking a major step to drive dynamic growth and strengthen the UK’s position as a leading hub for innovation.

Aegon UK said, 

We are proud to be partnering with the British Business Bank on the launch of the British Growth Partnership. This initiative aligns with our commitment to supporting the UK’s most innovative and high-growth companies, while delivering long-term value for our customers.

NatWest Cushon said, 

As a signatory to both the Mansion House Compact and the Accord, we’re committed to directing investment into innovative, high-growth UK businesses and impact led sectors to deliver better outcomes for our pension savers whilst also supporting the UK’s growth ambitions. The British Growth Partnership is a vital step forward to unlocking these investment opportunities. The investment due diligence is complete, and we are excited to move forward subject to Trustee approval.

The Bank has also today announced partnerships with Langham Hall, an established provider of fund administration, depositary and alternative investment fund management (AIFM) services, to support delivery of BGP Fund I. Isio, a UK pensions, investments, employee benefits and wealth advisory business, also provided support and advice in creating and positioning the fund.

In November 2024, it was announced that Aegon UK and NatWest Cushon agreed to work with the new British Growth Partnership with a view to making investments in the initial fund.  In May, the Financial Conduct Authority granted regulatory approval to BBB Investment Services Limited, the British Business Bank’s third-party arm, to provide investment services to clients.

The initial fund will have a direct investing strategy, co-investing alongside the Bank’s network of fund managers. The British Growth Partnership will leverage the Bank’s position as the most active late-stage investor into UK companies and the largest investor in UK venture and venture growth capital funds. Investments from the fund will be made on a fully commercial basis, independent of government, leveraging the Bank’s capability and market access to invest in a range of promising high growth UK companies.

In addition, the Bank has today announced it intends to launch a Venture Link initiative for pension funds. This will see the Bank publish enhanced information on its commitments to venture funds, as part of a package of measures to help pension funds to boost their investment capability, support them as they develop their strategy, reduce barriers to investment and help to unlock billions more in long-term investment for UK science, technology and innovation.  The Bank will now consult with stakeholders on the design of this initiative.

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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 sustainable growth and prosperity across the UK and to enable the transition to a net zero economy, by improving access to finance for smaller businesses. Its remit is to design, deliver and efficiently manage UK-wide smaller business access to finance programmes for the UK government.

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

British Business Bank plc, registered in England and Wales, registration number 08616013, registered office Steel City House, West Street, Sheffield, S1 2GQ, a development bank wholly owned by HM Government. It 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. 

BBB Investment Services Limited, registered in England and Wales, registration number 15662260, registered office Steel City House, West Street, Sheffield S1 2GQ. A wholly owned commercial subsidiary of British Business Bank plc. It is not a banking institution and does not operate as such. BBB Investment Services Limited is authorised and regulated by the Financial Conduct Authority. 

Aegon UK, a DC pensions provider with £226bn AUA (as at end of June 2025 has agreed to partner with the British Business 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 British Business 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.  

London LGPS CIV Ltd (‘London CIV’). which is the investment pooling vehicle for London-based Local Government Pension Schemes (LGPS), which have combined assets of £50.8bn AUM (at March 2024) became the first Local Government Pension Scheme (LGPS) pool to announce its intention to work with the British Business Bank on the launch of the British Growth Partnership, with a view to making an investment in the initial fund when launched, subject to commercial negotiations, due diligence, and agreement from client funds.

M&G Investments is part of M&G plc, a savings and investment business which was formed in 2017 through the merger of Prudential plc’s UK and Europe savings and insurance operation and M&G, its wholly owned international investment manager. M&G plc, which listed as an independent company on the London Stock Exchange in October 2019 and has £365 billion of assets under management (as at 30 September 2025), has committed to work with the British Business Bank on the launch of the British Growth Partnership, with a view to making an investment at first close, subject to finalising terms and structuring.

Langham Hall is a leading global provider of partner-led fund administration, depositary and alternative investment fund management (AIFM) services. It will support the delivery of the British Growth Partnership Fund I by providing fund accounting and administration from its London office, as well as depositary and AIFM services. Founded in London in 2006, the firm administers more than $230bn of assets across 750+ funds and provides depositary services for $200bn across 300 AIFs, with around 900 professionals across ten offices in Europe, the US and Asia.

Isio is a leading independent UK provider of actuarial & consulting, pensions administration, investment advisory, employee benefits and wealth advisory services. With a national team of 1,200 people across ten UK offices, Isio is committed to promoting financial wellbeing for all and works with companies, trustees and individuals to help them make informed decisions to protect their financial future.  

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