Sheffield-based British Business Bank, the UK government’s economic development bank, said its British Growth Partnership Fund I has achieved a first close at £200 million, with commitments from UK pension funds Aegon UK, Cushon Master Trust (Cushon), M&G, and the British Business Bank.
This is the first time that the Bank has raised external capital from multiple investors and has secured commitments from three large UK DC schemes and Master Trusts.
This is also the first time that Aegon UK and Cushon have invested in UK venture capital, bringing two of the UK’s pension funds into the asset class. The Bank has also partnered with Mobius, whose unit-linked structure has facilitated the Cushon investment.
All three pension funds now have access via the fund to the venture capital opportunities from the Bank’s pipeline and network of over 150 funds.
In addition, the British Growth Partnership Fund I will make its first investment of £8 million into autonomous driving company Wayve, contributing to the Bank’s £25 million investment announced in February.
“This investment demonstrates how pension fund capital is already being deployed into UK scale-ups and that the Bank can do this at speed through the British Growth Partnership,” said the British Business Bank.
“British Growth Partnership Fund I is an investment vehicle designed to address structural barriers and help pension funds increase their allocations to UK venture capital.
The fund has a direct investing strategy, co-investing alongside the Bank’s network of fund managers.
“Investments by the fund are made on a fully commercial basis, independent of government. Utilising the Bank’s market access and leveraging its position as the most active late-stage investor into UK companies and the largest investor in UK venture and venture growth capital funds, investments will comprise a range of promising high growth UK companies.”
In May 2025, the Bank secured FCA regulatory approval for its third party arm, BBB Investment Services, which provides investment advice in respect of the Fund. The fund is supported by Langham Hall, which provides fund administration, AIFM and depositary services.
The Fund intends to complete a final close in due course and is continuing discussions with prospective investors. The Bank is also developing further products to support pension funds to access venture capital in a range of ways.
British Business Bank CEO Louis Taylor said: “This is a defining moment for the Bank and is a major step forward in mobilising UK pension fund capital into venture.
“The UK has the world’s third largest venture capital market, yet pension fund capital has historically been deeply underrepresented.
“To maximise the value of great British innovation, we must bridge the gap between the UK’s large domestic savings pool and our fast-growing companies.
“The Bank is stepping up to provide pension funds with routes into the market, whether that is with us through the British Growth Partnership or alongside us via Venture Link. The launch of these initiatives represents a key milestone in delivering the Mansion House reforms and will help pension funds to access outstanding new opportunities on their doorstep.”
Lorna Blyth, Managing Director – Investment Proposition, Aegon UK, said: “This investment marks an important step in the evolution of our largest workplace default fund, the Universal Balanced Collection. Our members now benefit from access to innovative UK venture capital assets, including later-stage technology and life sciences, that have typically been out of reach for DC pension savers.
“As the cornerstone investor in the British Growth Partnership Fund I, we’re demonstrating our cutting-edge capabilities while delivering value for money and supporting better long-term outcomes for our members.”