British Business Investments, a commercial subsidiary of the British Business Bank, has made its second cornerstone commitment this year through its GBP500 million Managed Funds Programme.
The GBP100 million commitment is being made to the Hermes GPE Innovation Fund which is seeking to raise a target of GBP250 million. Investments are expected to be focused on later-stage opportunities in technology-enabled businesses across the UK and Europe with a productivity, people or sustainability theme.
The Managed Funds Programme seeks to draw in more institutional capital to the UK venture and growth capital markets and increase access to longer-term capital for ambitious and innovative high potential companies. It expects to generate a commercial rate of return from a diversified portfolio of fund and company investments, which will be selected and managed by experienced alternative asset managers.
Catherine Lewis La Torre, CEO of British Business Investments, says: “Hermes GPE is a long-term investor with a strong UK heritage and well-established growth capital investment capability. This commitment from our Managed Funds Programme will provide a steady stream of capital to innovative businesses across the UK looking to scale-up.’’
Launched in 2018, the Managed Funds Programme forms part of the Government’s response to the Patient Capital Review and, alongside British Patient Capital, is designed to address the patient capital funding gap in the UK. Access to these sources of patient capital will allow ambitious companies to reach their full potential and help ensure that the UK remains as the best place to start-up and scale a business.
British Business Investments has an existing relationship with Hermes GPE through the UK Innovation Investment Fund, which includes a previous investment into the Hermes GPE Environmental Innovation Fund, a 2010 vintage vehicle.
