UK FinTech Growth Partners LLP has launched the FinTech Growth Fund, a £1 billion fund aimed at helping UK FinTechs scale before their IPO. Backed by major players such as Barclays, NatWest, Mastercard, London Stock Exchange Group, and Peel Hunt, the fund will invest in UK FinTechs, primarily focusing on those between Series B and pre-IPO stages, in order to support their growth into globally recognized organizations.
The creation of the fund was inspired by the Kalifa Review, which identified a funding gap of £2 billion for growth-stage FinTechs and recommended the establishment of a £1 billion growth fund to address the gap and maintain the UK’s status as a global FinTech leader. Currently, these FinTechs struggle to secure domestic capital for scaling, leading to a loss of intellectual property and a widening gap between the UK and the US in terms of post-seed funding.
The fund plans to deploy its capital in Q4 2023 and has already identified several investment opportunities. On average, it aims to make four to eight investments per year, ranging in size from £10 million to £100 million. All investments will be made in the form of equity and equity-linked securities, and the fund will hold minority stakes in the invested companies. In addition to capital, the FinTech Growth Fund will provide strategic support to portfolio companies, leveraging its extensive network of experienced professionals in FinTech, venture capital, and the wider financial services ecosystem.
The executive team of UK FinTech Growth Partners includes industry veterans with extensive experience at major financial institutions. Furthermore, the non-executive advisory board will be chaired by former Chancellor of the Exchequer Lord Philip Hammond and will feature prominent figures from the UK financial services and FinTech sectors. This collective expertise will contribute to the successful operation of the fund and ensure its alignment with the goals of the Kalifa Review.
Phil Vidler, managing partner of UK FinTech Growth Partners, highlighted the need to address the funding gap in the UK FinTech sector and expressed the fund’s mission to not only provide capital but also engage with stakeholders across the nation to support the broader ecosystem. The launch of the FinTech Growth Fund marks a significant milestone in the support infrastructure for growth-stage UK FinTech businesses and reinforces the UK’s leadership position in the FinTech industry.
To complement its main objectives, UK FinTech Growth Partners will also undertake initiatives beyond traditional investing. This includes the “Beyond Investing” program, which focuses on promoting national connectivity, supporting early-stage founders, and fostering talent, diversity, equity, and inclusion within the UK FinTech ecosystem.
The establishment of the FinTech Growth Fund represents a major step towards addressing the funding challenges faced by UK FinTechs and ensuring the UK’s continued leadership in the global FinTech landscape. Through strategic investments, support services, and a commitment to national connectivity and inclusivity, the fund aims to foster the growth and success of the UK FinTech industry.
