Major pension schemes back £200 million initial fund to scale UK science and tech
Source: gov.uk (2025-11-20)

Chancellor doubles down on growth as her number one priority ahead of the Budget, as she welcomes major pension funds to Downing Street.

- Government’s pension reforms helping to attract major investment deals with 3 major pension funds supporting an initial fundraise of £200 million to invest in the UK’s most innovative companies across science and technology firms.
- Changes will boost saver returns and drive investment into Britain’s fast growing business as part of the government’s modern Industrial Strategy.
Britain’s biggest investors are putting their money behind the country’s next generation of success stories – delivering good returns for savers and driving investment into fast-growing UK firms that will create good jobs, boost wages and grow the economy.

Three major pension funds – Aegon UK, NatWest Cushon and M&G - are in the final stage of approval for contributing to an initial £200 million of investment to support cutting edge British businesses, following the Chancellor’s announcement of a new vehicle for pension investment in venture capital last year - the British Growth Partnership Fund.

The deal was revealed in a meeting on Thursday morning between Chancellor of the Exchequer Rachel Reeves, the Minister for Pensions Torsten Bell and senior leaders of the pension funds involved.

It builds on UK strengths in key growth areas identified in our industrial strategy such as clean energy, fintech and life-changing medical technology – helping businesses in these sectors to scale up, stay British and create skilled jobs across the country.

To go further in driving more institutional investment into venture capital opportunities, the British Business Bank has also announced its intention to launch its VentureLink initiative. This will help institutional investors better understand the venture capital market, with the Bank providing additional information about its commitments to crowd in more investment and boost the economy.

Chancellor of the Exchequer Rachel 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.

Minister for Pensions Torsten 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.

Louis Taylor, CEO, 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.

Alex Seddon, Head of Impact and Private Equity, 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.

The initial £200 million is the first step towards raising hundreds of millions of pounds of further institutional capital through the British Growth Partnership.

This is part of a wider drive to deliver better returns for pension savers and back British growth, as the government doubles the number of pension megafunds to create more effective schemes capable of investing at scale in fast-growing businesses and infrastructure.

17 of the UK’s largest workplace pension providers have already committed to investing at least 5 percent of their default funds in the UK productive assets such as infrastructure, which is expected to unlock over £50 billion for the UK economy by the end of the decade alongside megafund reforms.

These changes will give pension funds a trusted route into the best UK opportunities removing more barriers to institutional investment in growing businesses following the launch of the Sterling 20 coalition of funds last month.

Through the British Growth Partnership Fund and other initiatives, the British Business Bank is expected to raise at least £2 billion in further investment from pension funds over the next five years, supporting the growth of hundreds of companies.

More information

The new British Growth Partnership Fund will be supported by Aegon UK, NatWest Cushon and M&G, who are in the final stages of approvals, terms and structuring. It will invest in cutting-edge British businesses – building on UK strengths in areas such as clean energy, advanced manufacturing and life-changing medical technology – helping them scale up, stay British and create skilled jobs across the country.

Aegon UK said

We are proud to be partnering with the British Business Bank on the launch of the British Growth Partnership. This initiative aligns with our commitment to supporting the UK’s most innovative and high-growth companies, while delivering long-term value for our customers.

Natwest Cushon said

As a signatory to both the Mansion House Compact and the Accord, we’re committed to directing investment into innovative, high-growth UK businesses and impact led sectors to deliver better outcomes for our pension savers whilst also supporting the UK’s growth ambitions. The British Growth Partnership is a vital step forward to unlocking these investment opportunities. The investment due diligence is complete, and we are excited to move forward subject to Trustee approval.

Zoe Alexander, Executive Director of Policy and Advocacy at Pensions UK, said:

We are delighted to see pension funds and the British Business Bank come together to drive new investment in the UK economy.

The Mansion House Accord committed 17 pension funds – managing the majority of DC workplace pension savings – to provide more capital to the UK economy, where that is consistent with member interests. At the same time, it committed the Government to take action to ensure there is a strong pipeline of investable opportunities for pension schemes. This initiative builds on the momentum created by the Accord. Pensions UK is working with the British Business Bank to enable it to forge closer links with schemes, with a view to opening up more opportunities like this in future.