As we reach the midpoint of the year, I want to reflect on the first half of 2026, and what I’m seeing across our portfolio and the wider market.
There’s no escaping the fact that the backdrop for UK businesses remains challenging. Geopolitical instability, sluggish growth, ongoing cost of living pressures and the rapid rise of AI are all creating uncertainty for entrepreneurs to navigate. But over the past 15 years, I’ve seen time and again how resilient, optimistic and creative they can be in the face of exactly these kinds of pressures. That gives me real confidence, both in where we are today and in where I believe we can get to.
It’s that backdrop that makes what we’ve achieved this year feel particularly significant. We celebrated BGF’s 15th anniversary and we passed £5 billion invested in over 650 ambitious businesses across the UK and Ireland – a milestone that reflects both the strength of our long-term investment model and the ambition of the entrepreneurs we’ve had the privilege of backing.
£5bn deployed: supporting ambition across the UK
We have reached this milestone by continuing to invest across a range of sectors and all regions. Recent investments in Everflow, Urban Zoo and Signable demonstrate this breadth, spanning commercial utilities, sports technology and enterprise software. In June, we also completed our third follow-on investment in Gaussion, a UCL and Faraday Institution spinout pioneering technology that uses magnetic fields to improve the performance and lifespan of battery systems.
We have also made strong progress towards our commitment to invest £300 million in female-powered businesses as part of the Invest in Women Taskforce project, including through recent investments in adventure travel specialist Wild Frontiers and biotech firm TRIMTECH Therapeutics. Alongside capital, initiatives such as our Women in Entrepreneurs and on Boards (WEB) event in Manchester and our inaugural Future Chairs programme reflect our broader focus on improving access to capital, networks and leadership opportunities.
So far, 2026 has also featured successful exit activity, maintaining the strong performance delivered last year and taking total proceeds generated to more than £3.7 billion. Despite a challenging transaction environment, our recent performance has remained broadly in line with our long-term track record – with exits since 2016 delivering a 22.6% gross IRR and a 2x money multiple. We have also paid a dividend of £125 million to our shareholders in H1.
Towards the next chapter
That record underpins BGF’s ambition, announced last year, to invest a further £3 billion into UK businesses by 2030, through our own balance sheet and, at the appropriate time, a new fund of up to £500 million. Our proposed fundraising plans remain on track, and I’ve been encouraged by the engagement we’ve had with UK pension schemes this year.
Those conversations have reinforced my belief that there is a genuine commitment across the pensions industry to increasing investment in British businesses in line with the ambitions of the Mansion House Accord. I’ve seen first-hand the willingness of pension schemes, government and the wider industry to make that a reality.
Although progress has been modest in terms of firm capital commitments, there are understandable reasons for that. Converting ambition into deployment requires careful work across governance, operating models and investment processes. Implementation on this scale will inevitably take time, but it is encouraging to see momentum building. I believe BGF has an important role in helping pension schemes deploy patient capital into UK businesses, as the focus on place-based investment grows.
As I look ahead to the second half of the year, our focus remains unchanged: backing ambitious businesses with patient capital, supporting entrepreneurs over the long term and helping build the next generation of successful British companies.
Reaching £5 billion invested was an important milestone, but it is just one step in BGF’s long-term mission to drive good growth across the UK.
