SYPA commits £40m to local SME funds
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South Yorkshire Pensions Authority has committed £20m each to two new funds investing in small and medium-sized enterprises, with the aim of fostering regional growth and job creation.
The South Yorkshire Debt Fund will be managed by FW Capital and the South Yorkshire Growth Equity Fund by Foresight Group.
The South Yorkshire Debt Fund will be managed by FW Capital and the South Yorkshire Growth Equity Fund by Foresight Group.
“By backing local businesses, we are not only fostering economic growth but also creating jobs and driving innovation in our region. This initiative reflects our ongoing commitment to investing in South Yorkshire’s future and ensuring long-term prosperity for our communities,” said cllr Jayne Dunn, who chairs SYPA.
“I’m really pleased that we have finally been able to launch these two funds. The opportunities are there if you look for them and both these funds will have boots on the ground in South Yorkshire looking for the opportunities which will make a return to help pay our pensioners,” SYPA director George Graham wrote on LinkedIn. “This is what I mean when I say #lgps has a connection to place and the clue is in the name.”
South Yorks businesses can get up to £2m in loans or equity
FW Capital's fund is designed to support growing businesses across Barnsley, Sheffield, Doncaster and Rotherham with loans of up to £2m. Funding can be used for purposes such as working capital, equipment, recruitment, marketing and product development.
“Access to finance continues to be a significant challenge for many businesses, which is why the new South Yorkshire Debt Fund has been created. We are looking forward to supporting as many businesses as we can, with investment and with expertise to help them to thrive,” said Joanne Whitfield, fund director at FW Capital.
The South Yorkshire Growth Equity Fund managed by Foresight will provide equity investments of up to £2m, typically as part of larger funding rounds of up to £15m through co-investing alongside Foresight’s other funds.
Foresight partner Claire Alvarez said: “We see great potential in the vibrant business community across South Yorkshire and look forward to supporting their local economy and delivering positive social outcomes by creating high-quality, local jobs.”
SYPA runs the £11.1bn South Yorkshire Pension Fund and is a partner fund in the Border to Coast asset pool.
The government’s ‘Fit for the future’ consultation for reforming the Local Government Pension Scheme proposed a requirement for administering authorities to set a target range for local investment in their Investment Strategy Statement and to report on the extent and impact of these investments in their annual report, although the government did not provide a definition of ‘local’.
According to the Federation of Small Businesses, London (983,000) and the South East (907,000) had the highest number of private sector businesses, accounting for 34% of the UK business population, while the North East had 166,000 private sector businesses, the fewest of any English region. Between 2023 and 2024 the number of private sector businesses decreased by 125,000 in England, while it increased by 1,000 in Wales, 57,000 in Scotland, and 11,000 in Northern Ireland. A large proportion (16%) of all SMEs were operating in construction, and 14% fell into the professional, scientific and technical activities sector. One in 10 was in the wholesale and retail trade and repair sector.
The FSB said last week that the government’s employment rights bill was “a major source of stress” for small businesses and has called for a small business bill to be announced in the King’s Speech.
Foresight partner Claire Alvarez said: “We see great potential in the vibrant business community across South Yorkshire and look forward to supporting their local economy and delivering positive social outcomes by creating high-quality, local jobs.”
SYPA runs the £11.1bn South Yorkshire Pension Fund and is a partner fund in the Border to Coast asset pool.
The government’s ‘Fit for the future’ consultation for reforming the Local Government Pension Scheme proposed a requirement for administering authorities to set a target range for local investment in their Investment Strategy Statement and to report on the extent and impact of these investments in their annual report, although the government did not provide a definition of ‘local’.
According to the Federation of Small Businesses, London (983,000) and the South East (907,000) had the highest number of private sector businesses, accounting for 34% of the UK business population, while the North East had 166,000 private sector businesses, the fewest of any English region. Between 2023 and 2024 the number of private sector businesses decreased by 125,000 in England, while it increased by 1,000 in Wales, 57,000 in Scotland, and 11,000 in Northern Ireland. A large proportion (16%) of all SMEs were operating in construction, and 14% fell into the professional, scientific and technical activities sector. One in 10 was in the wholesale and retail trade and repair sector.
The FSB said last week that the government’s employment rights bill was “a major source of stress” for small businesses and has called for a small business bill to be announced in the King’s Speech.
Do pension funds consider UK SMEs an attractive opportunity beyond the call to ‘buy British’?
