Marvin OnumonuAegon UK, NatWest Cushon and M&G have backed a £200m fund to help scale science and technology businesses in Britain.
The investment follows Government pension reforms and is close to final approval.
Funds will support UK companies in areas such as clean energy, fintech and medical technology, aiming to create skilled jobs across the country.
The announcement came after a meeting between Chancellor Rachel Reeves, Pensions Minister Torsten Bell and senior leaders from the pension funds.
Louis Taylor, CEO at British Business Bank, said: “Today’s announcement brings us one step closer to mobilising institutional capital at scale into the UK’s fastest growing companies, both diversifying pension portfolios and providing much needed scale up funding.”
The British Business Bank plans to launch its VentureLink initiative to give institutional investors more information about venture capital opportunities.
Reeves said: “My number one priority is economic growth, and by unlocking investment in Britain’s most exciting sectors – from science and technology to clean energy – we’re backing the businesses that will power our future, deliver well paid jobs, and put more money in people’s pockets.”
Bell said: “Britain is becoming a nation of savers, with many more of us now saving into a pension.
“Today’s announcement is about connecting those pensions with exciting businesses.
“These commitments from Aegon UK, NatWest Cushon, and M&G show that the UK’s start up ecosystem offers a wealth of opportunity for institutional investors.”
Alex Seddon, head of impact and private equity at M&G Investments, said: “We’re delighted to be partnering on this important UK growth initiative.
“Our commitment will build on the £100 billion we already invest in the UK economy and power up the next generation of high growth UK companies. Britain’s businesses need patient capital to truly scale.
“By attracting more investment, the British Business Bank is taking a major step to drive dynamic growth and strengthen the UK’s position as a leading hub for innovation.”
