Future London Growth Fund Launches £70m+ Loan Pool
The FSE Group has launched the Future London Growth Fund, a £70 million+ debt facility targeting London scaleups overlooked by traditional lenders.
The Future London Growth Fund has launched with over £70 million in loans to support London-based scaleups. The FSE Group will deliver the capital, targeting a persistent finance gap for founders despite the city's status as a financial hub.
Loans will range from £1 million to £3 million. The fund plans to support 40 to 50 businesses across all 32 London boroughs and the City of London. It will reinvest repaid capital to sustain its lending activity.
Strategic backing
The fund is backed by key institutions including the British Business Bank and Funding London. The British Business Bank provided a cornerstone commitment of £20 million. Funding London is the Mayor of London's investment arm.
FSE has managed the £66 million debt portion of Funding London's Greater London Investment Fund since 2019. The group also manages debt funds for the British Business Bank in several other UK regions.
Targeted support
The fund specifically targets founders and businesses overlooked by traditional finance providers. It is designed for companies with strong commercial traction and credible plans to scale, even if they are not yet profitable.
Kala Desai, head of the Future London Growth Fund at FSE, stated that many younger companies are excluded by traditional lenders. The fund aims to address the gap between standard bank finance and larger-scale venture debt.
Scope and sectors
The fund will support businesses in diverse sectors. The portfolio will not concentrate on a single technology area.
Typical borrowers are innovative, high-growth businesses with strong revenue and a clear growth plan. A recent report found London is the toughest place in the UK to be an entrepreneur, with 71% of business owners reporting profit versus a UK average of 84%.
Mayor Sadiq Khan said, "London is the best city in the world to start and grow a business, but too often many are overlooked by traditional finance providers." Adam Kelly of the British Business Bank noted smaller businesses in underserved communities still struggle to secure growth capital.
FSE CEO Julie Silvester stated the fund provides flexible, relationship-led capital for innovation and job creation. Since 2019, FSE has invested in more than 100 London businesses through an earlier fund. The test will be how fast the £70 million+ gets lent and whether founders clear FSE’s bar despite not yet being profitable.
