BBB reports Future Fund has stake in 712 companies
British Business Bank (BBB) has added 31 companies to its existing list of those in which the Future Fund holds an equity interest.
The latest tally takes the fund’s total equity holdings to 712 as of 31 March 2024, after the loans were converted.
The Future Fund was launched during the pandemic, enabling firms to apply for government funding in the form of convertible loans, subject to equal match funding from private investors.
Read more: Who has been utilising the future fund?
The rate of conversions in the fourth quarter 2023/4 was lower compared to the previous quarter, with 31 new equity interests.
In contrast, the number of insolvencies this quarter was higher than the previous quarter, with 29 new insolvencies added.
The sustained level of corporate activity is in part due to outstanding Future Fund loans nearing their three-year maturity date.
All the companies with outstanding loans have been contacted to set out the options available to them. As of 31 March 2024, 143 loans had been granted an extension of up to two years.
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Cambridge-based biosciences company PlaqueTec, Leeds-based satellite tech company SatSense, and biotechnology firm Treos Bio, are all among the companies the Future Fund now holds an equity interest in.
“The Future Fund was created to ensure a flow of capital, at the height of the pandemic, to companies that would otherwise have been unable to access government support schemes, while ensuring long-term value for the UK taxpayer,” said BBB Venture Solutions managing director Ken Cooper. “We are pleased to see companies continuing to raise further private sector capital, which will allow the Future Fund to benefit from their progress.”
Launched on 20 May 2020, and open for applications until 31 January 2021, the Future Fund issued 1,190 companies with convertible loans worth £1.14bn in total. Third-party investors were required to at least match the Future Fund’s investment.
Read more: Half of Future Fund recipients say scheme saved business
