The newly established Future London Growth Fund, managed by FSE, aims to provide over £70 million in loans to support 40 to 50 high-growth businesses across all 32 London boroughs and the City. The fund offers loans ranging from £1 million to £3 million, filling a gap between traditional bank financing and larger venture debt.
The British Business Bank has provided a cornerstone investment of £20 million. Additional funding comes from Funding London, the investment arm of the Mayor of London, as part of the London Growth Plan. The initiative focuses on innovative companies that demonstrate strong commercial performance but may not yet be profitable.
FSE plans to reinvest repaid capital to extend the fund's reach. The firm has a history of regional investment, having managed a previous £66 million debt fund since 2019 that supported over 100 businesses. Previous portfolio companies include the edtech platform Springpod and the AI-driven transport firm VivaCity.
The fund targets businesses across diverse sectors, including healthcare, education, transport, and software. According to FSE, traditional lenders often overlook these companies by focusing on past financial performance rather than future growth potential. The fund intends to evaluate applicants based on their management quality and growth plans.
