The Financial Conduct Authority has granted regulatory approval to BBB Investment Services Limited, the British Business Bank’s third-party arm, to provide investment services to clients.
This is reportedly an important first regulatory step in the preparation for launch of the British Growth Partnership.
Announced at the International Investment Summit, the British Business Bank will establish the British Growth Partnership, “encouraging more UK pension fund and other institutional investment into the UK’s fastest growing, most innovative companies.”
The initial fund will seek to raise “hundreds of millions of pounds, including a commitment from the British Business Bank, to invest in some of the highest potential opportunities in the Bank’s venture capital pipeline.”
The British Growth Partnership will “utilize the British Business Bank’s market access and position as the largest investor in UK venture and venture growth capital.”
Investments from the fund will be made “on a long term, fully commercial basis, independent of government, leveraging the Bank’s capability and market access to a range of promising high growth UK companies.”
In November 2024, it was announced “that Aegon UK and NatWest Cushon agreed to work with the new British Growth Partnership with a view to making investments in the initial fund.”
Louis Taylor, CEO, British Business Bank said:
“Receiving regulatory approval from the Financial Conduct Authority to provide investment services is a key step on our journey to launching the British Growth Partnership. We are also delighted to be working with Aegon UK and NatWest Cushon and have had encouraging conversations with other pension funds and institutional investors.”
They added:
“By unlocking hundreds of millions of pounds of domestic investment for the UK’s high growth businesses through the creation of the British Growth Partnership, the UK can capture the full commercial potential of its world class breakthrough technology companies while providing a legacy for future generations of pensioners.
Lorna Blyth, Managing Director – Investment Proposition, Aegon UK said:
“The regulatory approval of BBB Investment Services marks another significant milestone in our partnership with the British Business Bank. This achievement is crucial in providing our members with access to innovative investment opportunities that have previously been beyond the reach of DC pension schemes. We are committed to fostering this collaboration and turning these opportunities into reality.”
Veronica Humble, Chief Investment Officer NatWest Cushon said:
“We fully support the UK growth agenda as in addition to the actual investment case, we see UK growth assets as key to getting pension members more emotionally connected and engaged with their pensions which ultimately drives better outcomes.”
Initiatives such as the British Growth Partnership are critical to providing future “investment opportunities in UK high growth and impact-focused sectors and so we welcome this latest development.”
BBB Investment Services has “appointed three Non-executive Directors to the Board, which will be Chaired by Louis Taylor, CEO, British Business Bank, effective from 7 May 2025.”