Salica Investments named Barclays as a cornerstone investor in its £150 million Growth Debt Fund II, signaling stronger backing for UK scaleups. The announcement on November 12, 2025 follows the fund’s first close, which also attracted commitments from the British Business Bank and the West Yorkshire Pension Fund. Salica said the new capital will widen access to flexible growth debt for innovation-led businesses across the country.
Fund Overview
Growth Debt Fund II is Salica’s successor vehicle to its inaugural fund, which targeted fast-growing companies seeking non-dilutive capital. The new fund maintains a domestic lending focus and is designed to provide tailored facilities for software and IP-rich hardware companies. Salica positions the strategy as complementary to equity financing, offering founders runway extension while preserving ownership.
Strategic Rationale and Partners
Barclays’ participation follows its Entrepreneurs Week 2025 and aligns with the bank’s Innovation Banking strategy. The lender’s collaboration with Salica adds another channel alongside support services delivered through Eagle Labs and broader business banking. Salica framed the partnership as a means to accelerate deployment into high-potential companies that are scaling products and teams in the UK.
Market Context and Strategy
Venture debt has become a prominent tool for later-stage startups that want growth capital without immediate dilution. Salica argues that flexible term structures and covenants can fit the needs of founders navigating commercialization, international expansion, and working capital cycles. The firm says Fund II will prioritize disciplined underwriting while remaining responsive to sector dynamics in enterprise software and advanced hardware.
Leadership Commentary
David Hayers, Head of Growth Debt at Salica, said Barclays’ cornerstone role validates the firm’s track record supporting high-growth technology businesses nationwide. He added that the additional firepower will expand Salica’s ability to finance scaling companies that demonstrate strong revenue traction and defensible IP. Hayers emphasized that the partnership is aimed at unlocking more flexible capital for innovators across regions.
Public Mandates and Policy Alignment
Managing Partner Andrew Noyons said Fund II builds on the performance of Fund I and aligns with the Mansion House Accord objectives to improve outcomes for savers and stimulate UK growth. He noted that a domestic lending mandate can channel institutional capital into productive assets that support productivity and competitiveness. Noyons said the collaboration reflects a shared ambition to help founders build globally competitive companies from the UK base.
Role of the British Business Bank
Adam Kelly, Managing Director and Co-Head of Funds at the British Business Bank, said the institution is continuing its partnership with Salica by backing the second fund. He highlighted that venture debt vehicles can help high-growth firms scale without ceding additional control. Kelly pointed to the first fund’s deployment across the UK’s nations and regions as evidence of the model’s impact beyond London.
Barclays Perspective
Abdul Qureshi, Head of Business Banking at Barclays, said the bank aims to power the UK innovation economy through financing and dedicated growth support. He referenced Innovation Banking and Eagle Labs as pillars that work alongside specialist partners to serve ambitious founders. Qureshi said the investment in Salica’s vehicle expands the range of venture funding options available to scaleups.
Outlook
With first-close commitments secured and a prominent cornerstone investor on board, Salica is preparing to ramp origination and portfolio construction. The firm expects demand from software platforms and hardware businesses with strong intellectual property and recurring revenue characteristics. Salica plans to deploy capital into companies pursuing market expansion, product development, and commercialization milestones.
Salica’s Growth Debt Fund II enters the market with institutional backing that supports its emphasis on flexible, non-dilutive financing. The partnership with Barclays, alongside the British Business Bank and West Yorkshire Pension Fund, positions the vehicle to address funding gaps for UK innovators. As deployment gathers pace, the fund’s focus on software and IP-rich hardware is set to test the role of venture debt in driving productivity and long-term economic growth.