British Business Bank Completes £250m Investment with Schroders Capital
Deal News | Nov 14, 2024 | British Business Bank Investments Ltd
The British Business Bank has finalized a £250m investment in collaboration with Schroders Capital under the Long-Term Investment for Technology and Science (LIFTS) initiative. This investment is matched by £250m from Phoenix Group, creating a £500m investment vehicle aimed at pension funds and other institutional investors. Phoenix Group, the UK's largest long-term savings and retirement business, is participating through its new private markets joint venture with Schroders, Future Growth Capital. The UK's Financial Conduct Authority approved the launch of the Long-Term Asset Fund (LTAF), the first of its kind dedicated to UK venture capital, with Schroders Capital set to start investments before year-end. This vehicle will focus on late-stage UK technology and science companies, with 20% allocation to life sciences. This initiative builds on the British Business Bank's support for life sciences through its Life Sciences Investment Programme and Future Fund: Breakthrough programme, both of which were extended in the Autumn Budget.
Sectors
- Private Equity & Venture Capital
- Technology and Science
- Pension Funds and Institutional Investment
Geography
- United Kingdom – The British Business Bank and other participants are based in the UK, and the focus of the investment is on UK companies.
Industry
- Private Equity & Venture Capital – The article involves major investments and creation of an investment vehicle, which are core activities in the private equity and venture capital sectors.
- Technology and Science – The investment vehicle targets late-stage UK companies in technology and science, with a significant focus on life sciences.
- Pension Funds and Institutional Investment – The investment structure is designed to be accessed by pension funds and other institutional investors.
Financials
- £250m – Investment by British Business Bank in collaboration with Schroders Capital.
- £250m – Matching investment by Phoenix Group.
- £500m – Total size of the new investment vehicle.
- 20% – Expected portion of the fund to be invested in life sciences.
- $97.3bn – Assets under management by Schroders Capital.
- £200m – British Business Bank's Life Sciences Investment Programme amount.
- £425m – British Business Bank's Future Fund: Breakthrough programme amount.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| British Business Bank | PE Firm | Company | A UK government-owned development bank making investments to support the economy. |
| Schroders Capital | Investment Vehicle Manager | Company | A $97.3bn specialist private markets business partnering to create the investment vehicle. |
| Phoenix Group | Pension Investment Provider | Company | The UK's largest long-term savings and retirement business, contributing £250m to the investment vehicle. |
| Future Growth Capital | Private Markets Joint Venture | Company | A joint venture between Phoenix Group and Schroders for private market investments. |
| Financial Conduct Authority | Regulator | Government | The UK financial regulatory body that approved the launch of the LTAF. |