The FSE Group has launched the Future London Growth Fund, a new debt fund for scaling businesses across London's 32 boroughs and the City of London. Backed by cornerstone commitments from the British Business Bank and Funding London, it expects to deliver more than £70 million in lending. Loans from £1 million to £3 million will target ambitious founders and businesses often overlooked by traditional finance providers.
Addressing London's Growth Finance Gap
Despite London's status as a leading global financial center, many smaller businesses still struggle to access growth capital. Research from the British Business Bank's Alone Together report found that only 71% of London business owners reported a profit, compared with the UK average of 84%. The fund aims to close the gap between bank finance and larger scale venture debt by supporting companies with strong commercial traction and credible plans to scale.
Backing and Strategic Objectives
The British Business Bank has provided a £20 million cornerstone commitment, while Funding London has invested through its entity GLIF Limited as part of the London Growth Plan. The initiative is designed to support economic growth and job creation across all 32 London boroughs and the City of London. It targets founders and businesses that may not yet be profitable but are expected to achieve profitability as their growth plans are delivered.
Leadership Perspectives
Mayor of London Sadiq Khan said the fund directly targets a funding gap and will provide a significant boost to businesses looking to scale up. FSE Chief Executive Julie Silvester added that the fund continues the company's mission to unlock potential in scaling businesses that traditional finance often overlooks. British Business Bank Managing Director Adam Kelly noted that the commitment will help increase finance availability for businesses with strong growth potential across London's diverse communities.
FSE's Regional Track Record
FSE brings more than 20 years of experience in delivering debt and equity funding to high growth businesses across the UK. The company manages approaching £460 million of funds and has supported over 1,000 scaling businesses in sectors including technology, clean energy, and advanced manufacturing. FSE has also managed the £66 million debt portion of Funding London's Greater London Investment Fund since 2019, helping its portfolio create and safeguard around 12,000 jobs.
A Broader Commitment to Small Business Finance
The launch forms part of a wider effort to improve access to finance for smaller UK businesses. In the 2025 to 2026 period, the British Business Bank supported UK smaller businesses to access £9.4 billion of finance, including £1.3 billion of public funding and £4.3 billion of private capital. This activity benefited 38,000 UK businesses, including around 30,000 businesses the Bank had not previously helped to fund.
Application Details
The Future London Growth Fund is now considering applications from eligible businesses and advisers across the capital. Interested parties can find full eligibility criteria and further information by visiting the fund's dedicated website. Loans from £1 million to £3 million are intended to help businesses scale, create new jobs, and deliver lasting economic impact across London.
The launch represents a coordinated effort by public and private partners to close the scale-up lending gap in London. With more than £70 million in expected lending and targeted support for underserved businesses, the fund aims to help entrepreneurs across the capital's diverse communities. It reinforces the London Growth Plan's commitment to sustainable and inclusive economic growth.