British Business Bank launches £2.5bn programme with £400m of seed capital

British Business Bank

The British Business Bank is launching British Patient Capital, a new £2.5bn programme, with £400m of seed capital, designed to enable long-term investment in high growth potential companies across the UK.

The creation of the £2.5bn programme is one of the key outcomes of the Patient Capital Review. Announced by the Chancellor at Autumn Budget 2017, the programme is an important element of the Government’s Industrial Strategy. It will support UK businesses with high growth potential to access the long-term financing they need to scale up.

By investing alongside the private sector, British Patient Capital will support a total of £7.5bn of investment for British businesses. British Patient Capital will be developed as a separate subsidiary of the British Business Bank with a view to future sale into the private sector with an established portfolio and proven track record.

Keith Morgan, chief executive, British Business Bank and chair of British Patient Capital said: “A major barrier holding back the continued development of young innovative firms is access to longer-term investment. The lack of this patient capital slows these firms’ growth and holds back the UK’s productivity.

“British Patient Capital has been created in consultation with Government and the finance community to help ensure that high potential, high growth businesses can access the long-term finance they need to build the UK’s innovation economy.”

Philip Hammond MP, Chancellor of the Exchequer, added: “The UK is home to some of the world’s most innovative companies and I want to make sure that they stay at the forefront of the tech revolution. So, British Patient Capital will provide an extra £2.5 billion for these cutting-edge businesses ensuring Britain remains one of the best places to start and grow a company.”

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