Salica Investments (“Salica”), a UK-focused investment firm, is pleased to announce the first close of its second Growth Debt Fund (“Fund II”), securing commitments from leading institutional investors, further underscoring growing investor confidence in the asset class.
The flagship repeat anchor investors for Fund II are the British Business Bank, which has made a £30 million commitment and previously backed Fund I, and West Yorkshire Pension Fund, which increased its commitment to £30 million from the first fund, alongside a number of other investors. The Fund provides vital capital to innovative and high growth companies across the full breadth of the UK.
Salica Growth Debt is managed by one of the UK’s most experienced teams with a combined 50 years of venture and growth debt experience.
David Hayers, Head of Growth Debt at Salica Investments, said
“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. 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.
“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, said:
“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 wide range of companies delivering strong realised returns at a lower risk than equity alternatives. Salica Growth Debt Fund II provides senior secured loans to high-growth companies with a regional focus across the UK in software, IP-rich hardware, and advanced manufacturing sectors. The team will continue to specialise in these sectors that many debt providers struggle to serve well. The result is attractive risk-adjusted returns in a high potential asset class.
