As outlined in the Kalifa Review of UK Fintech, the UK Fintech Growth Partners has launched its Growth Stage Fintech Fund.
The Kalifa Review declared there was an annual growth stage funding shortfall for UK Fintechs of around £2 billion. A £1 billion fund was envisioned to act as a catalyst to spur investment and help develop the ecosystem.
The UK is one of the top Fintech hubs in the world, buttressed by its leading global financial center. Fintech has emerged as a key area of innovation for the country, and industry insiders and policymakers are keen to support and boost the growth of Fintech.
According to a public statement, the Fund will invest in private Fintech ventures mainly from Series B to pre-IPO to help them scale. The entity envisions four to eight investments each year ranging between £10 million and £100 million – all in equity or equity-linked securities.
The fund has garnered the backing of Barclays, NatWest, Mastercard, London Stock Exchange Group, and Peel Hunt,
Along with the money, the Fund is expected to provide strategic support to portfolio firms to help them become successful.
The partners of the fund include:
- Angel Issa – former Global Head of Corporate Development & Strategic Investments at Nomura, having previously held similar roles at BNP Paribas and Morgan Stanley;
- Joe Parkin – former Managing Director – Head of Banks, Digital Channels, and UK Inorganic at BlackRock;
- Kaushalya Somasundaram – Former Executive Director and UK Head of Payments, Partnerships & Industry Relations at Square; Former Managing Director and Global Head of Fintech Partnerships & Strategic Innovation Investments Director at HSBC;
- Phil Vidler – CEO of Fintech Alliance, formerly Group Strategy Director at Pollinate and Head of Global Markets for HM Treasury.
Chaired by former Chancellor of the Exchequer, Lord Philip Hammond, the non-executive advisor board includes a litany of well-known figures, including:
- Clare Bousfield – MD Retail and Savings for M&G plc;
- Sir Charles Bowman – Former Senior Partner of PwC and former Lord Mayor of London;
- Dame Jayne-Anne Gadhia – Chair of Moneyfarm, Founder of Snoop and Ex CEO of Virgin Money;
- Lord Gerry Grimstone – former Minister for Investment jointly at the Department for International Trade and the Department for Business, Energy & Industrial Strategy, former Chair of Barclays bank and former Chair of Standard Life;
- Alastair Lukies CBE – Founder of Pollinate International and Founding Partner of Motive Partners;
- Dame Helena Morrissey – Chair of the Board of Directors Fidelis and Chair of Altum Group, former Chair at FTSE250 firm AJ Bell and former CEO of Newton Investment Management;
- Romi Savova – Chief Executive Officer (CEO) of PensionBee, and;
- Philip Smith – founder and former CEO of Embark Group.
The leadership of the Fund commented on the launch. Vidler, Managing Partner of the Fund, said that the UK has been at the forefront of Fintech innovation, but there is a growth funding gap. He said the Fund will address this shortfall.
“Our aim is to not only provide the capital needed for founders to scale their businesses, but to also engage with stakeholders across the nation to support the wider ecosystem. In doing so, we believe we can ensure the UK remains a global leader in Fintech. “
Ron Kalifa, author of the namesake Kalifa Review said he was delighted with the launch of the Fund.
“[this] represents another key building block in the support ecosystem for growth stage UK Fintech businesses. This is an important step forward towards ensuring the UK retains its leadership role in Fintech.”
Lord Dominic Johnson CBE, Minister of State, Department for Business and Trade, said that UK Fintech is one of the country’s “crown jewels,” which attracted $12.5 billion in investment in 2022. Second, only to the US and larger than the next 13 European markets combined.
Chair Lord Philip Hammond, Chair added that he championed the Fintech sector throughout his term as Chancellor:
“I have long believed its success is vital to maintaining the UK’s role as a global financial services centre through the early adoption of new technologies, products, and services.”
Expectations are for the first investments to emerge in Q4 of 2023.
