British Business Bank Backs Frontier Development Capital's £81.5m Evolution Fund
Funding | May 22, 2025 | British Business Bank Investments Ltd
The British Business Bank has pledged £40 million to Frontier Development Capital's newly launched £81.5 million Evolution Fund. This initiative is aimed at supporting the growth of smaller businesses in regions like the Midlands and the North of England. This fund, also supported by an equal commitment from the West Midlands Pension Fund, will offer flexible debt solutions ranging from £1 million to £8 million to established businesses showing potential for growth and exhibiting strong management. The fund is designated for various financial needs including management buyouts, acquisitions, shareholder reorganizations, debt refinancing, and embedding sustainability practices towards carbon net zero goals. Frontier Development Capital, with a proven record of aiding regional small businesses via over £200 million in investments since 2016, operates from Birmingham with offices throughout the UK. The Evolution Fund marks the second collaboration between FDC and the British Business Bank, reinforcing their shared commitment to regional enterprise growth.
Sectors
- Private Equity and Venture Capital
- Small and Medium Enterprises (SMEs)
Geography
- United Kingdom – The British Business Bank and Frontier Development Capital are UK-based, and the fund targets growth in the Midlands and the North of England.
Industry
- Private Equity and Venture Capital – The involvement of the British Business Bank and Frontier Development Capital in funding and investing in smaller businesses qualifies it under this sector.
- Small and Medium Enterprises (SMEs) – The article focuses on supporting growth for smaller businesses, which falls under the SMEs sector.
Financials
- £40 million – Commitment from British Business Bank to the Evolution Fund.
- £81.5 million – Total size of the Evolution Fund managed by Frontier Development Capital.
- £40 million – Commitment from West Midlands Pension Fund to the Evolution Fund.
- £200 million – Total investments by Frontier Development Capital since inception in 2016.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| British Business Bank | Funder | Company | A UK government-owned business development bank that provides support and investment for smaller businesses. |
| Frontier Development Capital (FDC) | Fund Manager | Company | An investment company focused on supporting small businesses in the UK, with a track record of over £200m in investments. |
| West Midlands Pension Fund | Funder | Company | One of the UK's largest pension funds, contributing £40 million to the Evolution Fund. |
| Adam Kelly | Managing Director and Co-Head of Funds | Person | Representative of the British Business Bank involved in the announcement. |