British Patient Capital, part of the Government backed British Business Bank, is to manage £250 million on behalf of the Nuclear Liabilities Fund (NLF), investing in venture and growth capital funds, targeting investment in high potential innovative companies across the UK. This is the first third-party source of funds for British Patient Capital and comes only 10 months since the business launched in June 2018. This transaction confirms that British Patient Capital is rapidly establishing itself in the venture capital sector and quickly building its track record.
The investment supports the primary objective of the NLF to achieve sufficiency of the fund to meet certain costs of decommissioning EDF Energy’s eight nuclear power stations currently operating in the UK.
Since June last year British Patient Capital has grown its portfolio to 31 funds, which have backed more than 200 businesses to date. With its aim to address the funding gap at the scale-up stage, British Patient Capital wants to work with institutional investors to unlock additional patient capital.
Catherine Lewis La Torre, CEO, British Patient Capital said: “This is an exciting next step in British Patient Capital’s journey. NLF’s investment is testament to British Patient Capital’s investment strategy and establishes our credentials as a professional fund manager of third-party capital.
“We’re delighted that the Nuclear Liabilities Fund shares our confidence in the potential for our investment strategy to deliver attractive commercial returns which will help them meet their future liabilities. We plan to continue to attract institutional capital to expand institutional investor diversity in the venture and growth asset class.”
Catherine Cripps, Member of the Investment Committee, Nuclear Liabilities Fund said: “We are pleased to be working with British Patient Capital on diversifying our portfolio. As a matter of principle, we look to hold a significant percentage of our assets in UK related investments, to enable us to play a supportive role in the development of the UK economy. We believe that British Patient Capital can help us achieve our required returns whilst playing this role. We are delighted that British Patient Capital’s strategy is a natural fit to this approach.”
British Patient Capital’s approach to patient capital is to increase the volume, diversity and accessibility of longer-term finance so that smaller businesses can access the finance they need to achieve their growth ambitions; ensuring that the UK remains the key place in Europe to raise a fund and scale a business. The intention is to float or sell British Patient Capital once it has established a sufficient track record.
The NLF was set-up in 1996 and is a UK Government fund to provide arrangements for funding certain long-term costs for the decommissioning of eight nuclear power stations formerly owned by British Energy, now EDF Energy.