BBB to allocate a further £200m to UK venture

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The British Business Bank (BBB) is to allocate an additional £200m to UK-focused venture and growth capital funds.

The continued investment is in part designed to mitigate the loss of support from the European Investment Fund after the UK leaves the European Union.

The commitments will be made via British Patient Capital (BPC) and British Business Investments (BBI) during the 2019/20 financial year.

The development comes a week after BPC won the mandate to manage £250m on behalf of the Nuclear Liabilities Fund (NLF).

It also comes a year and a half after the UK government announced the launch of BPC to address a £4bn funding shortfall it had identified in the UK growth capital space. The government pledged an additional £2.5bn in funding for BBB in the 2017 autumn budget to support the launch of BPC.

The initiative was the result of the treasury's patient capital review, overseen by a panel chaired by Permira's former chairperson and managing partner Damon Buffini. It was launched with the intention of pursuing a sale or flotation once it has developed a track record.