British Business Investments, a wholly-owned commercial subsidiary of the British Business Bank, today announces a commitment of up to €25 million to Wilshire’s European Venture Capital Fund II through its Managed Funds Programme.
This will be Wilshire’s second European venture capital fund-of-funds and will target venture capital managers that are based primarily in the UK and Germany and that invest into technology companies.
British Business Investments’ Managed Funds Programme seeks to draw more institutional capital into the UK’s venture and growth capital markets and increase access to longer-term patient capital for ambitious and innovative companies with high growth potential. The programme expects to generate a commercial rate of return and will build a diversified portfolio of underlying fund and company investments, which will be selected and managed by experienced alternative asset managers.
Alongside the commitment to Wilshire’s Fund II, British Business Investments has also committed to a co-investment mandate of up to an additional £21m (€25m). The co-investment strategy will make additional capital available for high-growth, UK headquartered Stage B+ companies. This co-investment mandate will help fill gaps in the market and further support promising UK businesses, unlocking the capital they need to grow and compete globally.
Judith Hartley, CEO, British Business Investments, said: “Wilshire’s second fund of funds brings additional expertise to the UK venture capital ecosystem. It will also increase access to patient capital for innovative UK businesses seeking to scale-up and compete on the global stage. By committing to Wilshire and the co-investment mandate, we are supporting fast-growing technology companies, while doubling down our support for the most successful UK headquartered businesses.”
Björn Waltmans, Managing Director, Wilshire, said: “We are honoured to work together with British Business Investments to support the UK venture capital ecosystem. With our longstanding track record investing in the UK, we are well equipped to support the thriving UK technology sector with capital and advice across all venture capital stages.”
British Business Investments aims to increase the supply and diversity of finance for smaller businesses across the UK by boosting the investment capacity of a range of finance providers. Since it was established in 2014, British Business Investments has committed more than £3.0bn to providers of finance to UK smaller businesses.