£2.5bn British patient capital programme launched to enable long-term investment in innovative companies across the UK

Wednesday June 13th, 2018

The British Business Bank is launching British Patient Capital, a new £2.5bn programme designed to enable long-term investment in high growth potential companies across the UK led by ambitious entrepreneurs who want to build successful, world-class businesses (June 13th).Government Opportunities

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.

The British Business Bank’s Venture Capital Catalyst programme’s existing and approved commitments of c. £400m will be transferred to British Patient Capital, allowing the new programme to start with a strong track record of commitments to venture and growth capital funds. Among the investments being transferred are:

A £30m cornerstone investment in venture capital firm Draper Esprit’s £115m capital raise. This will be the programme’s first evergreen investment, expanding the market for long-term investment in the UK. Completion of this investment is subject to Draper Esprit shareholder approval.

A £9m investment in the Dementia Discovery Fund, a specialist, 15-year life venture capital fund that invests in novel science to create meaningful new medicines for dementia. The fund benefits from a diverse range of strategic investors including charity, pharma, public and significant private investors.

Rt Hon Philip Hammond MP, Chancellor of the Exchequer, said: “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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