Salica Investments (“Salica”), a UK-focused investment firm, has announced the first close of its second Growth Debt Fund (“Fund II”), securing commitments from leading institutional investors and demonstrating the rising investor confidence in this asset class.
The repeat anchor investors for Fund II include the British Business Bank, which has committed £30 million having previously backed Fund I, and the West Yorkshire Pension Fund, which has increased its commitment to £30 million from the first fund. A number of additional institutional investors have also joined Fund II, which aims to provide essential capital to innovative and high-growth businesses across the UK.
Salica Growth Debt is managed by one of the most experienced teams in the country, with a combined 50 years of expertise in venture and growth debt investment.
“We’re already seeing strong institutional interest for a second close later this year, driven by Salica’s rigorous approach to deal selection, longstanding reputation and increasing investor demand for growth debt across the UK,” said David Hayers, Head of Growth Debt at Salica Investments. “Our team’s track record of deploying over £500m to some of the UK’s most promising and underserved businesses demonstrates why institutional partners are doubling down on our growth debt strategy.”
Andrew Noyons, Managing Partner, Salica Investments, said: “We are delighted to build on Fund I’s attractive investment performance with this larger successor fund. Furthermore, the strategy’s domestic lending focus is well aligned with the Mansion House Accord objectives to boost saver outcomes and deliver UK growth.”
Adam Kelly, Managing Director and Co-Head of Funds, British Business Bank, commented: “Following on from the success of Salica’s inaugural fund, which provided vital capital to high growth businesses across the UK’s Nations and regions, we are excited to continue our partnership by backing Fund II. Venture Debt funds like Salica’s Growth Debt Fund can help UK businesses to achieve strong growth without reducing control of their business.”
Darran Ward, Head of Alternatives, West Yorkshire Pension Fund, added: “Salica’s UK growth debt strategy is a natural fit for our Alternatives mandate. By increasing our commitment to Fund II, we’re reinforcing our support for UK growth and innovation whilst delivering resilient, long-term returns for our members.”
Fund I backed a broad range of businesses, achieving strong realised returns at lower risk than comparable equity alternatives. Salica Growth Debt Fund II will continue this focus, providing senior secured loans to high-growth companies in software, IP-rich hardware, and advanced manufacturing, with a strong regional footprint across the UK. These sectors, often underserved by traditional debt providers, offer compelling opportunities for attractive risk-adjusted returns in a high-potential asset class.
