UK Pension Giants Unite for £1bn Scale-up Fund to Back British Tech
Major pension providers commit to explore first-of-its-kind fund targeting high-growth science and technology companies.
Five of Britain's largest pension providers announced Monday (27 July 2026) a commitment to explore launching a £1 billion fund dedicated to scaling UK science and technology companies, marking a significant shift in how institutional capital supports domestic innovation.
The Consortium
Railpen, Nest, LPPI, LGPS Central, and Border to Coast are joining forces to establish the UK Scale-up Fund, which would provide patient, long-term capital to high-growth British companies. The British Business Bank is working with the providers to support the launch and intends to invest in partnership with the group, while the Office for Investment is supporting the consortium's exploration of the fund structure.
The initiative aligns with Prime Minister Andy Burnham's economic agenda. Burnham, who took office on 20 July 2026, has made reindustrialising Britain and retaining profits from successful companies within the UK economy a central priority.
Closing the Scale-up Gap
Chancellor of the Exchequer John Healey highlighted the structural problem the fund aims to address: "We create great companies in Britain but don't do enough to grow them with British capital and keep profits in the UK."
The UK has historically struggled to retain ownership of its most successful innovators, with many firms selling to overseas buyers when seeking growth capital. This initiative seeks to solve that "scale-up gap" by unlocking institutional pension capital for domestic companies at the critical expansion stage.
Returns for Pension Savers
The fund is designed to deliver dual benefits: supporting national economic growth while generating attractive returns for pension savers. Andy Bord, CEO of Railpen, said: "The UK Scale-up Fund represents a compelling investment opportunity where disciplined, patient capital can help growing companies scale, provide attractive returns for pension savers and generate lasting economic growth."
Government Backing
Prime Minister Burnham framed the initiative as part of a broader economic strategy: "This new fund would help unlock good growth in every postcode, connecting pension investment with the entrepreneurs and technologies that will reindustrialise Britain and create the jobs of the future."
Business Secretary Jonathan Reynolds also issued statements supporting the fund.
What Comes Next
The consortium is currently exploring the fund's development, with the target of raising over £1 billion in committed capital. If successful, the UK Scale-up Fund would represent a first-of-its-kind vehicle for channeling pension savings into British scale-ups, potentially reshaping how the UK finances its most promising technology and science companies.
The initiative arrives as the UK government intensifies efforts to make Britain the best place to start and scale a business, addressing long-standing concerns about access to growth capital for domestic innovators.