UK Fintech Growth Partners confirms £1bn investment fund for growth stage fintechs
UK Fintech Growth Partners has launched a £1 billion investment fund for growth stage UK fintechs, backed by some of the financial industry’s biggest giants.
£1bn Fintech Growth Fund launches
The Fintech Growth Fund, predominantly for companies between Series B and pre-IPO, is expected to deliver four to eight investments per year for equity and equity-linked securities, including minority investments, with capital ranging from £10 million to £100 million.
With backing from Barclays, NatWest, Mastercard, London Stock Exchange Group and Peel Hunt, UK Fintech Growth Partners has confirmed that the fund’s first investments will begin in Q4 2023, with “a strong pipeline of opportunities already identified”.
As well as growth capital, the fund will connect companies in its portfolio with “strategic support” and “an ecosystem of deep, relevant experience across fintech, venture capital, and the wider financial services ecosystem” as they pursue their corporate ambitions.
The executive team leading this fund comprises of venture capital, fintech and government policy experts, including former Nomura, BlackRock, Square, HM Treasury, Pollinate, HSBC, BNP Paribas and Morgan Stanley executives.
They are to be supported by a non-executive advisory board, chaired by former chancellor of the exchequer, Lord Philip Hammond and including notable figures such as Clare Bousfield, MD retail and savings for M&G; Sir Charles Bowman, former senior partner of PwC and former Lord Mayor of London; and Dame Jayne-Anne Gadhia, chair of Moneyfarm, founder of Snoop and ex-CEO of Virgin Money; among others.
The future of UK fintech
Discussing its launch, Sir Ron Kalifa, author of the Kalifa Review to which UK Fintech Growth Partners is responding, says the fund represents “another key building block in the support ecosystem” and “an important step forward towards ensuring the UK retains its leadership role in fintech”.
“Outside its core remit, UK Fintech Growth Partners will commit to providing wider holistic support for the UK fintech ecosystem. This extensive commitment will be realised through the ‘Beyond Investing’ programme which will consist of initiatives focused on national connectivity, support for early-stage founders, and talent, diversity, equity, and inclusion.”
Hammond added that the fund “directly addresses the investment gap facing growth-stage fintech businesses in the UK”, a central barrier identified by Kalifa Review.
“As such, I am confident it will help to sustain and create jobs and growth across the UK in this cutting-edge technology sector.”
