British Business Investments Ltd, a commercial subsidiary of the British Business Bank, has made its fourth commitment through its £500m Managed Funds Programme.
The cornerstone commitment of up to €75m is being made to manager Isomer Capital’s second fund, Isomer Capital II. The fund will be targeted at early stage venture capital managers across Europe, that invest primarily into early stage tech companies. Isomer II will also pursue a co-investment strategy, investing alongside its fund managers, with additional capital made available for the most promising, high-growth companies from the underlying portfolio.
By taking a cornerstone position, capital from British Business Investments can help attract significant, additional volumes of private institutional investment into funds which in turn invest in venture and growth capital opportunities.
This approach also serves to diversify the venture and growth capital investor base, providing fund managers with more fundraising options and enabling institutional investors to access the asset class. Ultimately this will increase the amount of funding available to innovative, high growth companies across the UK and Europe, enabling them to scale-up and compete globally.
Judith Hartley, CEO of British Business Investments, said: “Isomer Capital is a good example of a new breed of specialist fund of fund managers that we are starting to see emerge in the UK. Isomer Capital is the only UK headquartered, 100% venture focused fund of funds manager, with an entirely UK based team. The team has venture capital at its core, blending both entrepreneurial and investment experience. With a focus on early stage managers, this commitment will bring diversity to the Managed Funds programme at the investment level, whilst supporting earlier-stage innovative businesses across the UK with the capital they need to scale-up and compete on the global stage”.
Joe Schorge, Managing Partner of Isomer Capital, said: “We are thrilled to launch Isomer II with the support of British Business Investments, alongside existing and new institutional partners from Europe, Japan and the US. Today’s entrepreneurs are powered by stronger ambition, innovation, and technology than ever, and the COVID-19 crisis highlights how vital their solutions are for business and society. Isomer Capital II follows the same investment strategy as its predecessor, which has diversified exposure to over 600 high-potential technology companies in 30 countries, including some of Europe’s most well-known unicorns.”
Launched in 2018, the Managed Funds Programme is designed to address the patient capital funding gap in the UK. By targeting a commercial rate of return, the long-term aim of the Programme is to demonstrate the attractiveness of longer-term, later-stage venture and growth capital investments for institutional investors. Access to these sources of patient capital will enable ambitious companies to reach their full potential and help make the UK a great place to start-up and scale a business.
For more information:
British Business Investments
Senior Communications Manager
0207 898 5829 / 07827 552 301
The British Business Investments team at MHP Communications
Phone: 020 3128 8589
About Isomer Capital
Isomer Capital is a private investment firm focused exclusively on European Venture Capital. Isomer backs technology-enabled entrepreneurs across Europe through venture capital fund commitments, company co-investments, and providing liquidity through secondary purchase of funds and companies.
Isomer Capital offers efficient institutional access to European technology innovation by combining an entrepreneurial approach with portfolio management rigour. The firm seeks to generate strong returns while managing risk and delivering insight and access to its partners. Find out more at www.isomercapital.com
About British Business Investments
British Business Investments is the trading name of British Business Investments Ltd, a wholly-owned commercial subsidiary of British Business Bank plc, the UK government’s economic development bank. It forms part of the British Business Bank’s commercial arm.
British Business Investments aims to earn a commercial return by investing – through finance providers – in smaller businesses and small mid-caps, pursuing investments on a fully commercial basis without receiving any economic advantage from the government. Find out more at bbinv.co.uk.
British Business Bank plc and its subsidiary entities are not banking institutions and do not operate as such. Neither British Business Bank nor its principal operating subsidiaries are authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). A complete legal structure chart for British Business Bank plc and its subsidiaries can be found on the British Business Bank plc website.
The funding from British Business Investments to Isomer Capital’s Isomer II fund does not amount to any endorsement or warranty from British Business Investments, the British Business Bank plc, or the government of the UK.