Salica Investments Expands Growth Debt Strategy With Second Fund
The UK’s innovation economy continues to face a funding gap. High-growth companies in sectors such as software, IP-rich hardware, and advanced manufacturing often find it difficult to secure the kind of flexible financing they need. Traditional lenders tend to avoid these capital-intensive and specialised industries, while equity financing forces founders to give up ownership at critical points of expansion.
Salica Investments is positioning itself to fill this gap. The London-based investment firm has completed a first close of £150 million for its Growth Debt Fund II , designed to provide non-dilutive capital to UK scaleups. The fund builds on the success of its inaugural vehicle, which deployed over £500 million into promising UK businesses across technology and advanced industries.
The new fund has attracted significant institutional commitments, including £30 million each from the British Business Bank and the West Yorkshire Pension Fund. Its strategy focuses on providing senior secured loans to growth-stage companies, offering them an alternative to equity while enabling continued expansion.
For founders, this type of funding allows growth without dilution. For investors, it provides exposure to high-potential sectors through a structure designed to deliver attractive, risk-adjusted returns. Growth Debt Fund II underscores how Salica has evolved into a broader private markets platform, balancing the discipline of traditional investing with the flexibility required in fast-moving innovation markets.
Source:
A.M.
