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Barclays has become a cornerstone investor in Salica Investments\u2019 \u00a3150 million Growth Debt Fund II, signalling a major boost for UK high-growth tech firms seeking flexible funding solutions amid strong institutional support from the British Business Bank and West Yorkshire Pension Fund.<\/p>\n<\/div>\n
Salica Investments has marked a significant step in supporting the UK\u2019s burgeoning innovation economy with the announcement of Barclays as a cornerstone investor in its \u00a3150 million Growth Debt Fund II. This fund aims to provide flexible growth capital tailored to high-growth, innovation-driven UK businesses, particularly those in the fast-evolving sectors of software and IP-rich hardware. Barclays\u2019 involvement not only adds weight to the fund but also aligns tightly with its broader Innovation Banking strategy, which focuses on catalysing growth for ambitious founders and innovators across the country.<\/p>\n
The first close of Growth Debt Fund II also attracted substantial commitments from other prominent institutional investors, including a \u00a330 million commitment from the British Business Bank and an increased \u00a330 million investment from the West Yorkshire Pension Fund. These backings reflect a concerted effort to bolster scaling companies with accessible venture debt financing, a form of funding noted for offering growth capital without diluting founders\u2019 equity stakes. According to the British Business Bank, funds like Salica\u2019s Growth Debt Fund are critical in helping UK businesses maintain control while pursuing aggressive growth strategies.<\/p>\n
Barclays\u2019 involvement comes on the heels of the Barclays Entrepreneurs Week 2025, underscoring the bank\u2019s ongoing commitment to supporting the ecosystem of innovative businesses driving the UK\u2019s economy. Abdul Qureshi, Head of Business Banking at Barclays, highlighted this partnership as an extension of the bank\u2019s mission to “power the UK\u2019s innovation economy,” facilitating growth through not only financing but also support mechanisms like Barclays Innovation Banking and Eagle Labs. He emphasized that such collaborations expand the range of venture funding options available to scaleups, crucial for maintaining the UK\u2019s competitive edge globally.<\/p>\n
David Hayers, Head of Growth Debt at Salica Investments, expressed enthusiasm over Barclays joining as a cornerstone investor, noting it as a strong endorsement of Salica’s expertise in backing fast-growing technology companies across the UK. This collaboration, he stated, will enhance Salica\u2019s capacity to provide flexible capital to the country\u2019s most innovative firms. Reinforcing this view, Andrew Noyons, Managing Partner at Salica Investments, pointed to the new fund\u2019s alignment with the Mansion House Accord objectives, which seek to improve saver outcomes and drive UK economic growth through domestic lending focus. He emphasized the ambition to help UK founders scale globally competitive companies that stimulate productivity and long-term economic development.<\/p>\n
The West Yorkshire Pension Fund\u2019s \u00a330 million commitment also signals the strategic importance of supporting regional economic development through targeted investments. WYPF linked its involvement to a long-term goal of fostering job creation and innovation within the domestic economy, focusing on companies often underserved by traditional lenders. The fund\u2019s senior secured loan structure is designed to offer businesses the financial stability necessary to innovate and grow sustainably.<\/p>\n
Overall, Salica Growth Debt Fund II is positioned as an essential conduit for venture debt financing, led by a team with decades of combined experience in venture and growth debt markets. The refreshed fund builds on the success of its predecessor, which already provided vital capital to high-growth companies across the UK\u2019s nations and regions. With backing from major players like Barclays, the British Business Bank, and West Yorkshire Pension Fund, Growth Debt Fund II is set to enhance the funding landscape for UK scaleups, providing them with tailored financial solutions to thrive in a competitive global environment.<\/p>\n