The Life Sciences Investment Programme, previously announced by the Chancellor of the Exchequer, opens today for applications from fund managers. To be delivered by British Patient Capital, a commercial subsidiary of British Business Bank, the Life Sciences Investment Programme will bring more large-scale specialist UK focused fund managers to market, increasing the supply of venture growth finance to UK life sciences companies.
At the forefront of breakthrough treatments of disease, the UK is a world leader in life sciences. The discovery and development of new drugs, vaccines and cell/gene therapies have placed the UK at the frontier of responses to global challenges. These include the Covid-19 pandemic, ageing populations and the provision of sustainable healthcare. There is a lack of later-stage funds investing consistently at scale into the life sciences sector in the UK, meaning that many promising life sciences companies may not be able to fulfil their potential within the UK.
Through the Life Sciences Investment Programme, British Patient Capital has been allocated an additional £200m to make cornerstone commitments to later stage venture growth funds which are focussed upon the UK's life sciences sector. This £200m is expected to attract at least a further £400m of private investment to be invested alongside British Patient Capital, helping to ensure the UK continues to be a world leader in health and life sciences innovation.
In addition to applications from life sciences fund managers already located in the UK, British Patient Capital also welcomes applications from experienced international life sciences fund managers, with the appetite to build a sustainable presence and deep network within the UK.
Applicants should be targeting a total fund size of minimum £250m. British Patient Capital will make commitments of between £50m and £100m per fund, investing on at least as favourable terms as other investors.
Launched in 2018, British Patient Capital manages a £2.5bn investment programme through which it has already made over £150m of commitments to five UK life science focused funds, making it one of the most active fund of funds investors in the sector.
The Life Sciences Investment Programme will have access to a scientific advisory panel composed of leading industry figures, chaired by Life Sciences Champion Professor Sir John Bell. The panel will share insight on key scientific trends.
To further enhance the potential impact of the Life Sciences Investment Programme, British Patient Capital has entered into a collaboration agreement with Abu Dhabi's Mubadala Investment Company to work together on potential investment opportunities into later stage funds focussed upon UK life sciences companies.
The new collaboration agreement provides an additional channel for fund investments under Mubadala's £800m initial commitment to invest in UK life sciences as part of the UAE UK Sovereign Investment Partnership established in March of this year.
Mubadala is already a long-term investor in UK innovation and growth and will seek to create opportunities for UK life sciences companies across its global portfolio spanning 50 countries.
More information on the Life Sciences Investment Programme, including the Request for Proposals, is available at www.britishpatientcapital.co.uk
About British Patient Capital
British Patient Capital is the trading name of British Patient Capital Limited, 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.
Its mission is to enable long-term investment in innovative firms led by ambitious entrepreneurs who want to build large scale businesses. Launched in June 2018, British Patient Capital has £2.5bn to invest over 10 years in venture and venture growth capital to support high growth potential innovative UK businesses in accessing the long-term financing they require to scale up. Find out more at britishpatientcapital.co.uk.
British Business Bank plc and its principal operating subsidiaries 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.