The British Business Bank’s third-party arm BBB Investment Services has received approval to provide investment services to clients, which the bank said is an important first regulatory step in the preparation for the launch of the British Growth Partnership.
The British Growth Partnership creation was announced at the International Investment Summit in October 2024 and aims to encourage more UK pension funds and other institutional investments 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.
The investments from the fund will be made on a long-term, fully commercial basis, independent of government, leveraging the bank’s capability and market access to a range of promising high-growth UK companies.
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.
BBB Investment Services has appointed three non-executive directors to the board, which will be chaired by Louis Taylor, chief executive officer of the British Business Bank.
Taylor said that receiving the regulatory approval is a “key step” in the journey to launching the British Growth Partnership.
“By unlocking hundreds of millions of pounds of domestic investment for the UK’s high-growth businesses through the creation of the British Growth Partnership, the UK can capture the full commercial potential of its world-class breakthrough technology companies while providing a legacy for future generations of pensioners,” he noted.
Lorna Blyth, managing director of investment proposition at Aegon UK, added: “This achievement is crucial in providing our members with access to innovative investment o pportunities that have previously been beyond the reach of DC [defined contribution] pension schemes. We are committed to fostering this collaboration and turning these opportunities into reality.”
Veronica Humble, chief investment officer at NatWest Cushon, said that UK growth assets are “key” to getting pension members more emotionally connected and engaged with their pensions, which ultimately drives better outcomes.
She said: “Initiatives such as the British Growth Partnership are critical to providing future investment opportunities in UK high-growth and impact-focused sectors, and so we welcome this latest development.”
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