Birmingham launch for £2.5bn Business Growth Fund

THE Business Growth Fund – a new £2.5bn investment company aimed at boosting growing enterprises – will be officially launched in Birmingham next week.

The BGF is being run by the British Bankers’ Association and aims to help growing businesses with a turnover of between £10m to £100m by investing between £2m and £10m in return for a minimum 10% equity stake and a board seat.

The initiative is being backed by five major banks – Barclays, HSBC, Lloyds, RBS, and Standard Chartered.

Santander had originally also thrown its weight behind the project but has since pulled out.

Among those already appointed to work on the fund are former Barclays deputy chairman Sir Nigel Rudd as chairman, chief executive Stephen Welton, British Bankers’ Association chief executive Angela Knight and Richard Bishop as head of investment, currently a partner with international investors 3i.

In February, TheBusinessDesk.com reported that the British Bankers’ Association was considering the second city for the HQ of the fund.

It will be based at One Victoria Square with other regional offices across the UK to be announced in due course.

An official launch ceremony is being held at Birmingham City Council on Thursday which will hear from Sir Nigel and Ms Knight.