IP Group (LON: IPO) has been appointed by Aberdeen Investments to manage a UK venture growth portfolio within the CG Scottish Widows Growth LTAF. IP Group invests in science and technology companies, and confirmed the appointment in an announcement today.
Aberdeen Investments manages the growth sub-fund for Scottish Widows. The mandate launches with new investments in quantum computing, advanced battery technology and AI-enabled healthcare.
The fund is among the first UK pension schemes to actively allocate members’ capital to UK venture growth.
Initial investments are expected to include four companies. Oxford Quantum Circuits is building commercially available quantum computing systems, and Quantum Motion is developing scalable silicon-based quantum computers designed for mass adoption.
Nyobolt makes ultra-fast-charging battery technology for high-performance energy storage. Genomics Limited applies AI, machine learning and large-scale genetic datasets to preventative healthcare and drug discovery.
The mandate is designed to support stronger retirement outcomes for members and to address a constraint on the UK innovation economy: the availability of meaningful follow-on funding for companies ready to commercialise and expand.
The release says the model can be expanded over time, increasing the flow of long-term pension capital into high-growth UK businesses as part of the fund’s broader global private markets remit.
Nalaka De Silva, Head of Private Markets Solutions at Aberdeen Investments, said the UK does not lack scientific excellence, entrepreneurship or talent, but that competitive companies have lacked sufficient pools of patient domestic capital. Peter Fitzgerald, Chief Investment Officer at Scottish Widows, said pension savers should be able to benefit from growth and innovation across the UK.
Greg Smith, CEO of IP Group, said:
We believe this is only the beginning of a much larger opportunity to unlock growth, support economic prosperity and deliver attractive long-term returns for savers.
The release did not disclose a deal size, fees, the size of the fund, or any other financial terms.