UK fund managers battling to run £1bn Scale-up Fund, reports say

The UK government has launched a £1bn Scale-up Fund aimed at directing pension funds towards the nation's fastest-growing startups, according to recent reports. Asset management firms M&G Investments and Schroders have applied to oversee the initiative, which is intended to tackle the UK's funding gap for high-growth science and technology companies.

The fund, backed by the British Business Bank and supported by various pension schemes such as LPPI, Border to Coast, Railpen, and Nest, will help retain promising startups in Britain and generate stronger returns for pension savers. Prime Minister Andy Burnham emphasized the fund's potential to unlock growth in every region of the country and create future jobs.

However, the specific eligibility criteria for investment have not yet been disclosed. The fund's creation comes amid concerns that UK startups are often acquired by foreign entities or relocate to countries with larger pools of growth capital.