Share
LONDON, 22 October, 2026: The Future London Growth Fund has been launched to improve access to growth capital for ambitious scale-up businesses across London's 32 boroughs and the City of London. The Fund is backed by cornerstone commitments from British Business Bank, the Mayor of London’s investment arm, Funding London and managed by The FSE Group. Through its investment entity, GLIF Limited, Funding London has invested in the Fund as part of the Mayor of London’s ambition to support economic growth through the London Growth Plan.
The Fund expects to deliver more than £70 million of lending and is targeted at ambitious founders and businesses that may be overlooked or underserved by traditional finance providers. While London is home to one of the world's leading financial centres, gaps in access to growth finance remain a challenge for many smaller businesses across the capital.
Research from the British Business Bank’s Alone Together report[1] highlighted how entrepreneurs operating in economically deprived urban areas can face additional barriers to finance and business success, despite being located close to established investment ecosystems. Only a small share of entrepreneurs run the kind of business that can benefit from the investment ecosystem that London is known for globally. The report found that London was the toughest place in the UK to be an entrepreneur, with 71% of business owners reporting a profit, compared with the UK average of 84%.
The Fund aims to address these challenges. Offering loans ranging from £1 million to £3 million, it is intended to address the gap between bank finance and larger-scale venture debt and will support companies with strong commercial traction and credible plans to scale. These businesses might not yet be profitable but are expected to achieve profitability as their growth plans are delivered.
Funding will help businesses scale and create new jobs while delivering lasting economic impact for London.
The Fund will build on FSE’s established track record of supporting UK SMEs with regionally focused debt and equity funding. FSE has actively supported London businesses through the management of the £66m debt portion of Funding London’s Greater London Investment Fund since 2019 and will bring its relationship-led approach, established local networks and experienced investment team to the new Future London Growth Fund. FSE also manages part of the British Business Bank’s South West Investment Fund, Investment Fund for Scotland and Midlands Engine Investment Fund, and was recently appointed manager of the South East Investment Fund (Debt). It will continue to deliver vital funding to smaller businesses across each of these respective regions.
The Future London Growth Fund is now considering applications. Eligible businesses and advisers can find out more by visiting thefsegroup.com/funds/future-london-growth-fund.
The Mayor of London, 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. As a key commitment of my London Growth Plan, the Future London Growth Fund directly targets that funding gap and will provide a huge boost to businesses looking to scale up, helping them accelerate development and create new jobs. Delivering millions of pounds of support, the Fund will enable businesses to innovate and expand, bringing lasting economic impact as we continue to build a better, more prosperous London for everyone.”
FSE CEO Julie Silvester said: “We are delighted to be launching the Future London Growth Fund to aid businesses with high growth potential across the capital. At The FSE Group, our core mission is to unlock potential in scaling businesses that traditional finance often overlooks. Providing flexible, relationship-led capital gives ambitious management teams the freedom to innovate and create high-quality jobs. The Future London Growth Fund is a direct continuation of that ethos, providing the tailored support scaleups need to execute their next phase of expansion.”
Kala Desai, Head of the Future London Growth Fund at FSE, said: “London is home to an exceptional community of high-growth, innovative businesses, yet many still hit a barrier when accessing scale-up capital. Building on our proven track record, this new fund addresses that gap, providing debt finance to exciting and growing businesses across the capital. We are thrilled to bring dedicated finance to London’s founders to facilitate their growth and deliver long-term economic impact."
Adam Kelly, Managing Director, Debt and Regional Funds at British Business Bank, said: "It can be easy to assume that businesses in London have access to all the finance they need, but that isn't the reality for many ambitious founders across the capital. Smaller businesses operating in underserved communities, or those without established investor networks, can still struggle to secure the growth capital they need to scale. Our £20 million cornerstone commitment to the Future London Growth Fund will help address that gap, increasing the availability of finance for businesses with strong growth potential and supporting economic opportunity across London's diverse communities."
Puneet Raj Bhatia, Managing Director at Funding London, said: “There is a well-documented lending gap for London's SMEs looking to scale: deals too large for early-stage finance, but often overlooked by mainstream lenders. As the Mayor of London's investment arm, we're delighted to bring to market the Future London Growth Fund designed specifically to close that gap, and to have the expertise of FSE and the backing of the British Business Bank alongside us. Together, we are giving London's SMEs the capital they need to expand, create jobs, and contribute to the capital's economic growth.”
[1] https://www.british-business-bank.co.uk/news-and-events/news/entreprenuers-from-ethnic-minority-backgrounds-experience-substantially-worse-business-outcomes-than-white-entreprenuers