M&G Investments and Schroders are reportedly among the firms that have applied to manage a new £1bn fund targeting UK tech champions, according to Sky News.
The two City institutions are among a broad range of asset managers competing for the mandate to deploy fresh pension capital into high-potential domestic businesses.
Sky News first reported that both firms submitted applications to oversee the government-backed vehicle, which was formally unveiled last month.
The Scale-Up Fund has secured political support from ministers as well as administrative and financial assistance from the state-owned British Business Bank.
The initiative aims to retain the UK’s most promising technology champions by providing patient, long-term capital to help them expand domestically rather than seeking investment overseas.
A wide selection of asset management groups, including specialist early-stage venture investors, are said to have submitted proposals to run the vehicle.
Several major pension schemes have already committed to deploying capital into the fund, including local authority retirement funds such as Local Pensions Partnership Investments (LPPI). Additional backing has been secured from major sector funds including Border to Coast, Railpen and Nest.
Promoters of the scheme argue that directing institutional capital toward high-growth companies will generate strong financial returns while accelerating national economic regeneration across regional hubs.
Prime Minister Andy Burnham said last month: “The fund will 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.”
