LGPS pools among those looking to establish £1bn scale-up fund
Author: LAPF Investments | Published: July 29, 2026
Three LGPS pools are among a group of pension providers looking to establish a new UK scale-up fund of more than £1bn.
The scale-up fund – backed by LGPS Central, LPPI and Border to Coast as well as the likes of Nest and Railpen – would target scale opportunities born out of UK innovation in science and technology.
As part of this initiative, the British Business Bank is working alongside the pension providers to support the launch of the fund and with the intention of investing in partnership with the group. The Office for Investment is also supporting the consortium as it explores the development of the fund.
Prime minister Andy Burnham said: “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.
“That means more opportunities for working people, stronger returns for savers, and more businesses choosing to start, grow and stay in Britain.”
LPPI chief executive Chris Rule added: “The UK is a global hub for innovation and entrepreneurship, but it’s clear that many scaling businesses struggle to access the capital they need to reach their full potential.
“This cross-industry initiative will give pension funds the opportunity to generate sustainable, long-term returns whilst supporting the next generation of British success stories.
“Collaboration will be central to the fund’s success. The evolution of the LGPS has shown the value of institutions working together to build scale and deliver better outcomes.
“We’re looking forward to bringing that experience to this initiative, alongside other leading investors, to strengthen in the UK’s scale-up funding ecosystem.”
LGPS Central’s chief executive Richard Law-Deeks added: “The UK is home to some outstanding businesses and entrepreneurs.
“We welcome the opportunity to explore whether the UK Scale-Up Fund can provide a practical route for long-term LGPS capital to support their growth whilst delivering attractive risk-adjusted returns for partner funds and members.
“We invest on behalf of millions of scheme members, and every investment decision starts with our responsibility to deliver strong long-term outcomes for them. The proposed fund could help bring together institutional investors at scale and improve access to opportunities that may otherwise be difficult to achieve individually.”
Border to Coast’s chief executive Rachel Elwell added: “We’re proud to be part of this collaboration to support and scale more of our brilliant home-grown innovative businesses. Through our own UK opportunities strategy we see the role pension capital can play in backing high-quality UK investment opportunities.
“By combining scale, collaboration, investment discipline, and a strong pipeline of high-quality opportunities, this initiative can help deliver attractive long-term outcomes for pension savers while enabling more innovative UK businesses to grow and compete.”
