This browser is not actively supported anymore. For the best passle experience, we strongly recommend you upgrade your browser.
| 1 minute read

Investment in UK Innovation driven by Mansion House reforms

The UK government plans to inject £320 million into high-growth companies through innovative investment vehicles, a key milestone in the Mansion House reforms. Under the Long-term Investment for Technology and Science (LIFTS) initiative, £250 million will go to two undisclosed bidders, creating investment vehicles for pension funds targeting science and tech companies, with an anticipated total private capital influx exceeding £1 billion.

Simultaneously, a Growth fund within the British Business Bank (BBB) will be established to attract third-party capital, including pension fund investments. With access to a permanent capital base over £7 billion and support from major pension providers managing assets exceeding £350 billion, the Growth fund aims to enhance market value.

In parallel, the government's commitment to innovation includes the Venture Capital Fellowship, modeled after the successful US Kauffman Fellowship. Additionally, £50 million is allocated for the British Business Bank's ‘Future Fund: Breakthrough’ program, supporting high-growth, innovative firms in breakthrough technology sectors.

A notable portion of the investment, £20 million, is dedicated to fostering university spinouts, aiming to replicate success stories like Oxford Nanopore. Unveiled before the Autumn Statement, these measures highlight the government's emphasis on leveraging the pensions industry's potential to drive economic growth through innovation.

Louis Taylor, CEO of the British Business Bank, emphasizes the transformative impact of these measures, expressing confidence in the British Business Bank's ability to unlock billions in additional investment for the UK's fastest-growing companies. This reflects a strategic alignment with driving economic returns and supporting pension savers.

The UK’s “most promising” high-growth companies will receive backing from new investment vehicles designed to encourage pension funds to invest in them, in the first £320m tranche of the government’s Mansion House reforms. Of the announced investment, £250m will go to two unnamed bidders under the Long-term Investment for Technology and Science (LIFTS) initiative, which works to establish new funds to invest in science and tech companies.


uk investment, executive search, recruitment, pensions, private markets, insurance solutions

Please contact us for further information