BGF CEO Andy Gregory
Piranha Photography
Growth investor BGF could raise up to £500 million (about $672 million) in its first external fundraise aimed at boosting investment in UK-based high-growth companies.
The London-based firm is considering an external fund as part of its pledge to invest £3 billion in British businesses over the next five years, including early-stage startups in deep tech and life sciences.
“The case for supporting this country’s ambitious entrepreneurs is clear and one recognized by government as a priority,” BGF CEO Andy Gregory said. “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.”
BGF could tap pension funds in the raise, with Gregory saying in a statement that “we know that institutions such as pension funds are keen to work to the Mansion House Accord, channeling long-term institutional capital into UK growth companies.”
In May, the UK government announced that 17 workplace pension providers signed up to commit 10% of defined contribution assets to the private markets, including PE and VC, within five years.
Currently, BGF is funded through its founding shareholders, leading UK-headquartered banks Barclays, HSBC, Lloyds and NatWest. Since its inception in 2011, the firm has invested more than £4.7 billion across more than 600 early-stage, growth and quoted companies, including meal-kit business Gousto and fitness chain Gymbox.
BGF reported a 21.4% IRR since 2016. According to its latest Companies House filing, the group posted a £121 million pre-tax profit in 2024, up from £68 million the previous year. Investment income also rose to £120 million from £105 million during the same period.
The firm has also delivered a string of exits in recent months. In August, it sold organ preservation company OrganOx to Terumo, generating a £175 million return on its £35 million investment. Last month, BGF completed its exit from ventilation and cooling business Monodraught to Genuit for £55.6 million, achieving an 11x return.
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