Aegon UK and NatWest Cushon have committed to working with the British Business Bank (BBB) on the launch of the British Growth Partnership (BGP), an investment vehicle that seeks to increase pension investment in UK high-growth companies.

As announced in Chancellor, Rachel Reeve’s, Mansion House speech, Aegon will provide cornerstone investment to the initial fund of the BGP, aimed at accessing the BBB’s pipeline of opportunities in venture capital.

Meanwhile, NatWest Cushon has agreed to work with the BGP “with a view” to the Cushon Master Trust making an investment in the initial fund.

Both commitments are subject to completing commercial negotiations, regulatory and due diligence processes, and, in NatWest Cushon’s case, obtaining agreement from the trustees.

The initial fund will seek to raise hundreds of millions of pounds, including a commitment from the BBB, to invest in the bank’s venture capital pipeline, with the BGP set to launch in 2025.

Aegon UK’s initial investment will be integrated into its UK flagship workplace default, the Universal Balanced Collection (UBC) fund, forming part of Aegon’s private market allocation.

In partnering with the BBB, Aegon said it would seek to benefit from its scale, access, and experience in investing in innovative funds and companies.

Alongside its potential investment, NatWest Cushon has committed to continued collaboration with the BBB to provide input into the development of further products that access investment opportunities in UK growth assets.

“This announcement is an endorsement of the work the BBB is doing to support pension funds and other institutional investors to access venture capital opportunities,” commented BBB CEO, Louis Taylor.

Aegon UK CEO, Mike Holliday-Williams, added: “In June we announced plans to revolutionise our largest workplace default to include private market investments.

“This partnership with the BBB further demonstrates our cutting-edge capabilities, with the aim of providing workplace savers with access to innovative investment opportunities that have previously been out of reach to DC pensions.”

Also commenting on the announcement, NatWest Cushon CEO, Ben Pollard, stated: “As a signatory to the Mansion House Compact, we see the UK growth agenda as a win-win.

“By investing in impact focused sectors and UK high-growth companies, we’re helping secure better outcomes for pension savers and a better future for them and broader society.

“Initiatives like the BGP are critical to giving pension schemes access to these investment opportunities.”

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