BGF is exploring an external fundraise for the first time, to provide new institutional investors with the opportunity to invest in UK growth companies, through its proven regional platform.
A fundraise would allow prospective investors seeking to deploy capital into UK SMEs to invest alongside BGF’s existing shareholders – Barclays, HSBC, Lloyds and NatWest. With a scalable, nationwide platform, BGF has delivered a 21.4% internal rate of return since 2016, underscoring its ability to deliver attractive, risk-adjusted returns.
BGF could raise up to £500 million in institutional investment next year, as part of its commitment to invest more than £3 billion over the next five years. Lazard has been appointed to advise BGF as it explores its options.
Since inception in 2011, BGF has demonstrated how patient growth capital can transform the prospects of entrepreneurial companies across the UK and Ireland. To date, BGF has invested more than £4.7 billion in over 600 businesses, creating over 27,000 new jobs and helping to generate £7.1 billion in revenue growth.
Notably, 74% of the capital deployed by BGF has been outside of London and the South East. BGF was established to fill a long-standing gap in the investment market by backing growth-ready, small and mid-sized businesses, across all regions of the UK.
It also aligns with the Mansion House Accord, which encourages long-term investment by UK pension schemes and other institutions into high-growth UK enterprises.
Andy Gregory, CEO of BGF, said: “The case for supporting this country’s ambitious entrepreneurs is clear and one recognised by Government as a priority. Over the past decade, we’ve proudly backed hundreds of founder-led businesses, supporting them with the capital and expertise they need to scale and succeed. These companies are the backbone of our economy, and it is vital that they receive not only funding, but also the support required to thrive.
“We are now in the early stages of exploring a capital raise that could unlock further sources of funding into this crucial segment of the UK market. We know that institutions such as pension funds are keen to work to the Mansion House Accord, channelling long-term institutional capital into UK growth companies. Thanks to the continued support of our shareholders, we have the platform, the capacity, and the proven expertise to be the partner of choice for investors looking to back ambitious businesses. As part of our £3 billion commitment, we have the capacity to take on £500 million from institutional investors over the course of 2026.”
In recent months, BGF has seen strong momentum across exit activity. This includes OrganOx, the Oxford-based organ preservation specialist, which reached a landmark $1.5 billion valuation in UK medtech, delivering a return of £175 million on BGF’s £35 million investment. Monodraught, the Buckinghamshire green tech ventilation and cooling business, was valued at £56 million and generated an 11x return on BGF’s investment. Further recent exits include Brisant Secure, fulfilmentcrowd and Braidwater.
With unmatched scale and reach, over a decade of proven delivery as the UK’s leading investor in growth-stage companies, and a clear mandate to support businesses nationwide, BGF is well placed to expand its impact and further strengthen its contribution to the UK economy.
