£200m South West Investment Fund preparing for 2023 launch
Press release
British Business Bank invites proposals from potential fund managers to operate the new fund.
A £200 million investment fund to support the growth of small and medium-sized businesses across the South West of England is on course to be launched in the first half of next year.
The South West Investment Fund is the first in a series of new Nations and Regions Investment Funds being launched by the British Business Bank which will deliver a £1.6 billion commitment of new funding to drive sustainable economic growth.
The South West Investment Fund will offer a range of commercial finance options with loans from £25,000 to £2 million and equity investment up to £5 million. The new fund will cover the entire South West region including Bristol, Cornwall and the Isles of Scilly, Devon, Dorset, Gloucestershire, Somerset and Wiltshire.
It aims to tackle an identified funding gap across the South West and increase the supply and diversity of early-stage finance for smaller businesses. Similar funds are in the planning stages for Wales, Scotland and Northern Ireland, along with follow-on funds for the Midlands and the North of England.
The new fund follows the success of the regional investment funds already being delivered by the British Business Bank through the Cornwall and the Isles of Scilly (CIOSIF), Midlands Engine (MEIF) and Northern Powerhouse (NPIF) Investment Funds.
Since the existing funds launched, the Bank has invested more than £562 million into NPIF, MEIF and CIOSIF. This investment crowded in more than £849 million in additional private sector co-investment and has supported more than 1,715 smaller businesses.
The design of the South West Investment Fund builds on the success of our other regional funds. It will increase the supply and diversity of early-stage finance for smaller businesses in the region, providing finance for firms that might otherwise not receive investment and helping to break down barriers in access to finance. The levels of private debt lending and equity investment in the South West are significantly below what we would expect given the region’s share of the UK’s smaller business population. That’s something the new fund will tackle by backing ambitious businesses to drive sustainable economic growth. - Ken Cooper Managing Director, Venture Solutions, British Business Bank
The South West Investment Fund will operate across three tiers: smaller loans (£25K-£100K), debt (£100K-£2 million) and equity (up to £5 million).
Request for proposals from potential fund managers
The British Business Bank is now inviting proposals from potential fund managers to operate the new South West Investment Fund via its website. It expects to appoint fund managers in the first quarter of 2023 and the South West Investment Fund is expected to launch in Spring 2023.
The British Business Bank is responsible for administering the Nations and Regions Investment Funds on behalf of the UK government. The Bank is establishing investment funds in areas not currently served by the Bank’s existing regional funding programme before launching follow-on investment funds in existing fund areas.
Further Information
Notes to editors
About the Nations and Regions Investment Funds and the South West Investment Fund
The Nations and Regions Investment Funds will increase the supply and diversity of early-stage finance for UK smaller businesses, providing finance to firms that might otherwise not receive investment and help to break down barriers in access to finance. Operating in a commercially sustainable way the Nations and Regions Investment Funds will deliver a £1.6 billion commitment of new funding through investment strategies that best meet the needs of the businesses in their nation or region.
The British Business Bank is responsible for administering the Nations and Regions Investment Funds on behalf of the UK government. We are establishing investment funds in areas not currently served by the Bank’s existing regional funding programme before launching follow-on investment funds in existing fund areas.
£200 million has been allocated to provide a new fund for businesses in the South West of England, building on the Cornwall and Isles of Scilly Investment Fund. The South West Investment Fund will offer a range of commercial finance options with small loans from £25,000 and equity investment up to £5 million. The new fund will cover the entire South West region including Bristol, Cornwall and the Isles of Scilly, Devon, Dorset, Gloucestershire, Somerset and Wiltshire.
The South West Investment Fund will have a demonstrable presence across the region linking up with the existing small business finance ecosystem to increase reach and create an impact beyond the funds, helping to boost productivity, innovation and jobs.
About the British Business Bank
The British Business Bank is the UK government’s economic development bank. Established in November 2014, its mission is to drive sustainable growth and prosperity across the UK and to enable the transition to a net zero economy, by improving access to finance for smaller businesses. Its remit is to design, deliver and efficiently manage UK-wide smaller business access to finance programmes for the UK government.
The British Business Bank’s core programmes support over £12.2 billion Read footnote text 1 of finance to more than 96,000 smaller businesses Read footnote text 2 .
As well as increasing the supply and diversity of finance for UK smaller businesses through its programmes, the Bank works to raise awareness of finance options available to smaller businesses. The British Business Bank Finance Hub provides independent and impartial information to businesses about finance options, featuring short films, expert guides, checklists and articles from finance providers to help make their application a success.
The British Business Bank is also responsible for administering the government’s three Coronavirus loan schemes and its Future Fund, together responsible for delivering £80.4 billion in finance to 1.67 million businesses. These schemes are now closed to new applications.
British Business Bank plc is a public limited company registered in England and Wales, registration number 08616013, registered office at Steel City House, West Street, Sheffield, S1 2GQ. Wholly owned by HM government, the Bank and its subsidiaries are not banking institutions and do not operate as such. They are not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). A complete legal structure chart for the group can be found at British Business Bank.
-
Return to footnote location
1
Figures as at end March 2022
-
Return to footnote location
2
Figures as at end March 2022
Latest news
-
Read more about British Business Bank’s Growth Guarantee Scheme provides over £250m of lending to UK smaller businesses Press release
20 November 2024 -
Read more about British Business Bank appoints Co-Chief Banking Officers Press release
19 November 2024 -
Read more about North East marketing training company expands following NPIF II funding Press release
15 November 2024