Innovation UK > News > Innovation News > Fund-of-fund managers named

Private investors have committed £175m to the UK Innovation Investment Fund (UKIIF) via two fund-of-fund managers, creating a total pool of £325m.

The Government named European Investment Fund (EIF) and Hermes Private Equity as joint managers of the UKIIF fund, which will be the biggest technology venture capital fund in Europe.

Science and innovation minister Lord Drayson said he was confident the fund would hit £1bn before it closes to new investors in 2011.
 
"UKIIF has been a hit with investors. We can now ensure that Britain's high-tech growth companies will have the capital to fulfil their potential," he said. "By backing entrepreneurs we back jobs and growth."

The EIF will manage a £200m technology fund-of-funds, which will cover digital technology, life sciences and advanced manufacturing. Hermes will manage a £125m low-carbon and clean technology fund-of-funds.

Once the fund is launched, the two managers will then be able to raise money from third parties with a target of £1bn.

Simon Walker, chief executive of the British Private Equity and Venture Capital Association (BVCA), said: "It's terrific news for UK venture capital. To achieve £325m in less than six months after the fund was announced is very impressive, particularly in the current climate. Venture capital-backed companies will be at the vanguard of the UK's economic recovery."