London businesses struggling to secure growth capital from traditional lenders are being targeted by a new debt fund expected to deliver more than £70 million in loans.
The Future London Growth Fund, managed by The FSE Group, will offer loans of £1 million to £3 million to businesses with strong commercial traction and credible plans to scale, including companies that are not yet profitable.
The fund is backed by the British Business Bank, which has committed £20 million, and Funding London, the Mayor of London’s investment arm.
The initiative aims to plug a financing gap between conventional bank lending and larger venture debt facilities, particularly for companies operating outside London's established investment networks.
Despite London's reputation as a global financial centre, access to capital remains uneven. Research from the British Business Bank found that just 71% of London business owners reported making a profit, compared with a UK average of 84%.
FSE CEO Julie Silvester said in a statement: “We are delighted to be launching the Future London Growth Fund to aid businesses with high growth potential across the capital. At The FSE Group, our core mission is to unlock potential in scaling businesses that traditional finance often overlooks.”
Kala Desai, Head of the Future London Growth Fund at FSE, added: “London is home to an exceptional community of high-growth, innovative businesses, yet many still hit a barrier when accessing scale-up capital. Building on our proven track record, this new fund addresses that gap."
The fund builds on FSE's management of the £66 million debt portion of Funding London's Greater London Investment Fund since 2019.
"Smaller businesses operating in underserved communities, or those without established investor networks, can still struggle to secure the growth capital they need to scale," added Kelly.
The new fund will cover all 32 London boroughs and the City of London, with applications now open.
In a statement, the Mayor of London, Sadiq Khan, said: “London is the best city in the world to start and grow a business, but too often many are overlooked by traditional finance providers… The Fund will enable businesses to innovate and expand, bringing lasting economic impact as we continue to build a better, more prosperous London for everyone.”