Highlights:
- Forms part of BGF’s plan to deploy more than £3 billion over the next five years
- Supports the Mansion House Accord by enabling greater institutional investment in high-potential UK businesses
BGF, the UK and Ireland’s most active growth capital investor, is exploring its first-ever external fundraise to offer new institutional investors the opportunity to invest in UK growth companies through its well-established regional platform.
The proposed fundraise would allow institutional investors seeking to deploy capital into UK SMEs to invest alongside BGF’s existing shareholders – Barclays, HSBC, Lloyds, and NatWest. With a proven track record, BGF has achieved a 21.4% internal rate of return since 2016, demonstrating its ability to deliver strong, risk-adjusted performance. The company could raise up to £500 million from institutional investors next year, aligning with its broader commitment to invest more than £3 billion over the next five years. Lazard has been appointed to advise on the process.
Since its founding in 2011, BGF has shown how patient growth capital can transform the potential of entrepreneurial businesses across the UK and Ireland. To date, it has invested over £4.7 billion in more than 600 companies, helping to create 27,000 new jobs and generate £7.1 billion in revenue growth. Notably, 74% of BGF’s capital has been deployed outside London and the South East, highlighting its dedication to regional economic development.
The initiative also supports the Mansion House Accord, which promotes long-term institutional investment in high-growth UK enterprises.
Andy Gregory, CEO of BGF, said:
“The case for supporting this country’s ambitious entrepreneurs is clear and one recognised by government as a priority. Over the past decade, we’ve proudly backed hundreds of founder-led businesses, supporting them with the capital and expertise they need to scale and succeed. These companies are the backbone of our economy, and it is vital that they receive not only funding but also the support required to thrive.
“We are now in the early stages of exploring a capital raise that could unlock further sources of funding into this crucial segment of the UK market. We know that institutions such as pension funds are keen to work to the Mansion House Accord, channelling long-term institutional capital into UK growth companies. Thanks to the continued support of our shareholders, we have the platform, the capacity and the proven expertise to be the partner of choice for investors looking to back ambitious businesses. As part of our £3 billion commitment have the capacity to take on £500 million from institutional investors over the course of 2026.”
In recent months, BGF has seen strong momentum across its portfolio exits. These include OrganOx, the Oxford-based organ preservation innovator, which achieved a landmark $1.5 billion valuation, returning £175 million on BGF’s £35 million investment. Buckinghamshire-based green tech company Monodraught achieved a valuation of £56 million and delivered an 11x return on investment. Other notable recent exits include Brisant Secure, Fulfilmentcrowd, and Braidwater.
With unmatched scale, a decade of delivery, and a clear mandate to back UK growth-stage businesses, BGF is well positioned to expand its impact and strengthen its role in supporting Britain’s economic growth.
