The British Business Bank Breaks New Ground With a £500m Investment into Underrepresented Fund Managers
In a pioneering commitment to diversity, the British Business Bank (BBB), a state development bank and influential LP in UK-based venture capital, has put forth a groundbreaking initiative. The bank has dedicated £400m specifically for diverse and emerging fund managers. This move is the UK’s first of its kind for those often overlooked in the investment world. Furthermore, the BBB has set an inaugural gender objective, with the initiative planning to invest at least 50% of their capital into female-led fund managers. This capital is expected to be released in 2026 through the new Investor Pathways Capital initiative.
The latest initiative is set to support not just female fund managers, but also those from ethnic minorities, individuals with disabilities, and those from less affluent backgrounds. The goal? Helping these underrepresented groups amass an attractive investment track record and diversify the UK’s pool of experienced investors. This exciting undertaking is part of the BBB’s ‘Plan for Change’, aimed at dismantling barriers and propelling growth.
In addition to this venture, another £50m has been pledged to the Invest in Women Taskforce, an initiative designed to uplift the prospects for female entrepreneurs in the UK. This doubles the previous investment, bringing the BBB’s total commitment to this cause to £100m. The task force is presently amassing a £250m ‘Women Backing Women’ fund, which aims to support female fund managers who sub-sequentially invest in female founders.
The approach with a female-centric focus is grounded in the belief that a female investor is twice as likely to back another woman as a male investor. With only 15% of senior investment professionals in the UK being female, this initiative aims to address the power dynamic. There’s a clear, untapped potential, and according to a recent report from the Investing in Women Code, backing female and ethnic minority-led businesses could add a whopping 13% to the value of the UK equity market. The challenge now is to open doors and elevate entrepreneurial talent from the broadest possible pool. Only through such representation can the potential of exceptional founders who fail to meet traditional templates be truly unlocked.
- •British Business Bank commits £500m to invest in diverse and emerging fund managers sifted.eu10-07-2025