LONDON The U.K. government has appointed Hermes Private Equity and the European Investment Fund (EIF) as managers for the UK Innovation Investment Fund (UKIIF).
The Chancellor of the Exchequer, Alistair Darling, also announced that the U.K. government's investment of £150 million (about $240 million) would be complemented with an additional £175 million (about $280 million) from other investors.
The UKIIF is intended to ensure that venture capital is available by early in 2010 to invest in innovative British businesses in life sciences, clean technology, digital and advanced manufacturing.
The U.K. government's contribution will be split between two ear-marked funds. The £100 million invested in a fund-of-funds to be managed by the EIF will cover information and communications technology, life sciences and advanced manufacturing. The remaining £50 million will be assigned to a low-carbon and clean-tech fund-of-funds to be managed by Hermes. These complementary mandates allow for investment across all technology sectors and at all stages.
The UKIIF will be open to further investment before it closes to investors in 2011.
"This will be much needed investment for the young, innovative businesses which will create jobs and opportunity in our future growth areas. It is these venture-backed companies that can be at the vanguard of the UK's economic recovery," said Simon Walker, chief executive of The British Private Equity & Venture Capital Association (BVCA), in a statement.
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