Some of the UK’s biggest pension providers are looking to create a £1 billion investment fund to support the domestic tech sector.
If you are currently investment planning in Cheshire, Oswestry or elsewhere in the UK, it is worth considering that the scale-up fund is poised to boost domestic, high-growth firms across the country that are focused on science and technology.
The 2026 initiative forms a large plank of the Treasury’s plan to get more pension funds backing British. At present, the consortium behind the initiative manages assets worth hundreds of billions of pounds. It comprises a number of different pension providers, including Nest, the Local Government Pension Scheme, Railway Pension Investments, Local Pensions Partnership Investments, and the Border to Coast Pension Scheme.
The scale-up fund has been described as a ‘compelling’ investment opportunity that will not only benefit companies, but also provide lucrative returns for pensions savers, while also generating durable economic growth. It is anticipated the fund would deliver solid returns for longer-term investors and help businesses scale up and commercialise emerging tech.
In an official statement, the Treasury said it wanted the fund to connect institutional capital with the enterprises and venture managers driving UK innovation. This in turn would create skilled jobs and thus further propel economic growth. The new Prime Minister, Andy Burnham, said the proposed fund constituted an endorsement of British business, ambition and local talent, as his government pursues a much-publicised reindustrialisation strategy.
To meet the fund’s goals, the British Business Bank, which focuses on development, is collaborating with pension providers and the Office for Investment to ensure the fund gets off to a winning start.
