FSE launches London debt fund with lending goal above £70 million
The British Business Bank has committed £20 million to the fund, which plans to offer loans of £1 million to £3 million.
The FSE Group has launched the Future London Growth Fund, expecting to lend more than £70 million to scale-up businesses in the capital. It is aimed at companies that struggle to obtain funding from traditional lenders and covers all 32 London boroughs as well as the City of London.
The British Business Bank and Funding London, the Mayor of London’s investment arm, are cornerstone backers. Adam Kelly, the bank’s Managing Director, Debt and Regional Funds, said its commitment was £20 million. Funding London invested through GLIF Limited as part of the Mayor’s London Growth Plan.
FSE said the fund would provide loans between £1 million and £3 million for businesses with demonstrated commercial progress and credible expansion plans. It is intended to bridge a financing gap between bank lending and larger venture-debt arrangements.
A British Business Bank report identified London as the UK’s toughest location for entrepreneurs. It found that 71 per cent of business owners in the capital reported a profit, against a national average of 84 per cent. The report also highlighted additional financing barriers for entrepreneurs in economically deprived urban areas.
FSE has managed the £66 million debt component of Funding London’s Greater London Investment Fund since 2019.
