British Business Bank commits £40m to Evolution Fund targeting Midlands and northern England
Funding | May 23, 2025 | UK Tech Funding
The British Business Bank has announced its commitment of £40 million to the Evolution Fund, an investment vehicle by Birmingham-based Frontier Development Capital (FDC), which is targeting established SMEs in the Midlands and the northern regions of England. The £81.5 million fund aims to provide debt financing from £1 million to £8 million to companies with strong growth potential. Commenting on the investment, Adam Kelly from the British Business Bank highlighted the institution's goal to diversify finance sources for smaller businesses across the UK's regions. Additionally, the fund received another £40 million from the West Midlands Pension Fund, emphasizing FDC's focus on addressing the financial needs of regional businesses that are often overlooked by conventional financial bodies. Previous investments by Frontier Development Capital have supported firms such as micromobility startup Beryl and Opus Safety in enterprise software.
Sectors
- Financial Services
- Transport & Technology
Geography
- United Kingdom – Primary location of the British Business Bank and operational focus of the Evolution Fund.
- Midlands and Northern England – Specific regional focus of the Evolution Fund.
Industry
- Financial Services – Involves the management of investment funds and provision of debt financing to SMEs.
- Transport & Technology – Referenced due to previous investments in micromobility startup Beryl and enterprise software group Opus Safety.
Financials
- £81.5m – Total size of the Evolution Fund managed by FDC.
- £40m – Amount committed by the British Business Bank to the Evolution Fund.
- £40m – Amount committed by the West Midlands Pension Fund to the Evolution Fund.
- £1m to £8m – Range of debt financing amounts that the Evolution Fund will provide to SMEs.
- £16.7m – Recent commitment by the British Business Bank to a sustainable tech fund.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| British Business Bank | Investor | Government | Committed £40m to the Evolution Fund to support SME financing. |
| Frontier Development Capital (FDC) | Fund Manager | Company | Manages the £81.5m Evolution Fund focused on providing debt financing to SMEs. |
| West Midlands Pension Fund | Investor | Company | Committed £40m to the Evolution Fund. |
| Beryl | Portfolio Company | Company | A micromobility startup previously invested in by Frontier Development Capital. |
| Opus Safety | Portfolio Company | Company | An enterprise software group previously invested in by Frontier Development Capital. |
| JP Morgan | Investor | Company | Mentioned in relation to a sustainable tech fund backed by British Business Bank. |
| BNP Paribas | Investor | Company | Mentioned in relation to a sustainable tech fund backed by British Business Bank. |