Venture to be wise: UK venture and growth capital

The UK government has set out bold ambitions to boost the UK economy. A key part of its plan is to make the UK a more attractive place to run a company, from starting up to publicly listing on a stock exchange.

One element of the government’s strategy is to increase the supply of capital to this area. The questions are, of course, where this capital comes from and where in the UK financial system it should go.

The government is clear that it wants to see greater investment into the UK’s venture and growth capital markets. These are private markets, where companies in their relatively early stages look for financing to ramp up their business, grow their operations and expand into new markets. The theory is that increasing capital to these areas will make the UK a more attractive place for companies to start up. This increased capital can also be seen as a way of improving these companies’ chances of succeeding, by helping to support and grow the UK economy.

The aim is to use pension schemes as sources of funding. The government cites the asset class as being complementary to schemes in various ways, including its generally strong long-term performance, which meets schemes’ return needs, and the illiquid and long-term nature of the investments, which matches the timescales of open pension schemes. 

Download our publication for more on:

• What are venture and growth capital?
• What’s the return profile?
• Is there a market opportunity?
• What positive impact can venture and growth capital have?
• What’s the market like?

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