British Business Bank launches £2.5bn patient capital programme
THE BRITISH Business Bank has set up a new £2.5bn investment programme aimed at innovative, high-growth UK companies.
The launch of the British Patient Capital programme follows the Patient Capital Review, which was announced by the Chancellor Philip Hammond during the Autumn Budget in 2017.
The state-backed development bank said on Wednesday that the programme will support UK businesses with high-growth potential to access the long-term financing they need to scale up.
“A major barrier holding back the continued development of young innovative firms is access to longer-term investment,” said Keith Morgan, chief executive of the British Business Bank and chair of British Patient Capital.
“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.”
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 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,” said Hammond.
“So, British Patient Capital will provide an extra £2.5bn for these cutting-edge businesses ensuring Britain remains one of the best places to start and grow a company.”