£200mn first close for British Growth Partnership Fund I with Aegon UK and NatWest Cushon making first investments into UK venture
British Growth Partnership Fund I has achieved a first close at £200m, with commitments from UK pension funds Aegon UK, Cushon Master Trust (Cushon), M&G, and the British Business Bank. The close demonstrates progress in driving venture capital allocations from Mansion House Accord signatories.
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 £8m into autonomous driving company Wayve, contributing to the Bank’s £25m 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.
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.
The British Business Bank has also launched Venture Link, an online portal that provides direct sight of the Bank’s investments into venture and venture growth capital funds that remain open for investment, supporting institutional investors as they navigate these opportunities.
Venture Link is an initiative to help pension funds to boost their investment capability, support them as they develop their strategy, reduce barriers to investment and help to unlock billions more in long-term investment for UK science, technology and innovation.
Louis Taylor, CEO, British Business Bank, 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.”
Rachel Reeves, chancellor of the exchequer, said, “Our pension savers want to back Britain and want their pensions to benefit from the growth in our world-class innovation economy. The British Growth Partnership is doing that, and helping Great British tech success stories like Wayve hold their own on the global stage. We are making it easier for businesses like Wayve to start, scale and stay in the UK.”
Peter Kyle, secretary of state for business and trade, said: “Today marks a major step forward in Government backing the next generation of high‑growth companies. Through the British Growth Partnership, we’re unlocking much needed funding, to scale the most ambitious, and cutting-edge, innovators right across the UK – so they can grow faster here at home and compete globally.”
Ian Connatty, managing partner, The British Growth Partnership, said, “Pension funds have long recognised the strength of UK venture capital, but structural barriers have limited their access to the market. By bringing together leading pension funds and deploying capital at speed, British Growth Partnership Fund I demonstrates how these barriers can be overcome and provides a blueprint for others to follow. We will be building on this momentum in the year ahead.”
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.”
Alex Seddon, head of Impact and Private Equity, M&G Investments, said, “This is a significant step forward in connecting UK pension savings with the businesses driving future growth. As a long‑term investor with more than £100 billion already deployed across the UK economy, initiatives like the British Growth Partnership are critical to unlocking and supporting the next phase of innovation, productivity and jobs across the UK. Investing in Wayve highlights the kind of high–growth British companies this initiative is designed to back – and the role patient capital can play in helping them to scale.”
Veronica Humble, chief investment officer, NatWest Cushon said, “We’re delighted to be one of the initial investors in the British Growth Partnership Fund I. We’ve been working with the British Business Bank for a while to get to this point and so it’s great to be part of this important milestone. As a signatory to both the Mansion House Compact and the Accord, we’re committed to directing investment into innovative, high-growth UK businesses to drive long-term returns for our customers, and the British Growth Partnership is vital to unlocking these investment opportunities.”
Alex Kendall, co-founder and CEO of Wayve, said, “Unlocking pension capital into high-growth technology companies is critical if the UK wants to lead in AI. This investment shows how long-term capital can support long-term innovation, helping companies like Wayve scale embodied AI globally while delivering meaningful economic and societal impact.”
Zoe Alexander, executive director of Policy and Advocacy at Pensions UK, said: “The appetite for the British Growth Partnership Fund demonstrates clearly that pension funds are making real progress in delivering on the commitments they set out in the Mansion House Accord, and that the mechanisms needed to invest in high‑growth UK companies are beginning to come into place. By starting to overcome the long‑standing structural barriers to venture capital investment, initiatives like the British Growth Partnership are helping pension schemes to access attractive long‑term opportunities while supporting innovative UK businesses to scale. That is good for savers, good for the economy and exactly the kind of momentum the Accord was designed to create.”