British Patient Capital invests 13pc of funds in fintechs
Fintechs received 13 per cent of British Patient Capital’s (BPC) investments in its financial year ending 31 March 2020.
Fintech was also identified by BPC chief executive Judith Hartley (pictured) as a key sector in which innovative companies are well positioned to support economic growth as the nation adapts to the impact of Covid-19.
In its second year, BPC – a commercial subsidiary of the British Business Bank – made 11 new commitments with a total value of £405m.
The total value of portfolio commitments reached £1.004bn across 42 funds and the overall commitments to funds are now at more than £5.8bn.
The companies within BPC’s portfolio fall in to one of eight categories.
These include future of work and education (19 per cent), marketplaces and consumer (18 per cent), as well as digital health and life sciences (15 per cent).
Others include big data and AI (13 per cent), fintech (13 per cent) and clean growth, sustainability and mobility (nine per cent), cybersecurity (five per cent) and frontier tech (five per cent).
The total portfolio internal rate of return for taxpayers was 10.7 per cent.
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“During the 12 months to March 2020, BPC made 11 commitments to new venture and venture growth funds, increasing our total fund investments to 42,” said Hartley.
“In terms of investment amount, we committed £405m in the year to March 2020, taking our total commitments to just over £1bn.
“This is a clear demonstration of the scale at which we can now deploy capital, and a reflection of the market opportunity.
“The number of underlying companies within our portfolio has also increased from 322 to 503 over the 12-month period.
“Many of these are leading edge, innovative companies operating in key sectors such as life sciences, AI & big data, cybersecurity and fintech, and are well positioned to support economic growth as we adapt to the impact of Covid-19.
“While it is still early in the life of BPC and the funds to which we have made commitments, it is encouraging that we continue to achieve a positive return.”
Read more: British Business Bank appoints new head of patient capital activities
“Our long-term vision is for more home-grown and fully funded, high growth companies to fulfil their potential to be players on the global stage,” added Russ Cummings, chair of BPC.
“By increasing the availability of patient capital to our high-growth businesses, we fuel innovation, heighten ambition and power economic growth.
“As we adapt to the impact of Covid-19, breakthrough innovations based on digitisation, deep technology and life sciences are set to create a wave of transformative, high-growth companies.
“With many world-class universities, a strong track record in science and research, and a technology sector now regularly producing global champions, the UK is well positioned to be a leader of this wave.
“With £1.5bn still be to be deployed, it’s the long-term patient capital that we, and others provide, that will fuel innovation, and power economic growth.”
Read more: British Business Bank lent over £6.6bn in 2018
