30 Aug 2017
Legal & General continues its support for Venture Capital by investing in Oxford Sciences innovation
Legal & General Capital (LGC), the principal investment arm of Legal & General Group, has completed its seventh Venture Capital platform deal with its investment in Oxford Sciences Innovation (OSI), a commercialisation platform, dedicated to breakthrough science and technology.
Formed out of Oxford University, OSI has successfully raised £580 million from leading global investors to help fund the next generation of world-class technology businesses. It is the preferred partner of the University for the funding and development of companies formed from its Mathematical, Physical, Life Sciences and Medical Sciences divisions.
With the UK’s SME equity funding gap estimated at over £4 billion per annum, Legal & General sees a huge opportunity in using its patient capital to accelerate growth companies, helping to drive forward and develop the UK’s venture ecosystem and stimulate much needed economic growth. The investments offer attractive risk adjusted returns for L&G shareholders in a diversifying asset class, whilst providing investment opportunities for the Group.
Paul Stanworth, CEO of Legal & General Capital, said: “For over thirty years the UK has faced chronic underinvestment in physical and digital infrastructure. We see a huge market opportunity to plug this funding gap. By providing early stage capital to first class venture managers, we can drive British enterprise, create jobs and boost economic growth, at the same time as providing excellent investment returns for our shareholders and insight into cutting-edge developments that can influence our strategic direction and provide synergies for the wider Group. Over the last 18 months, LGC has committed £80 million into the sector, including backing Accelerated Digital Ventures, Cambridge Innovation Capital, Atomico, Anthemis, Kindred, and now Oxford Sciences Innovation.”
Matteo Colombo, Director of SME Finance at Legal & General Capital, said: “We have already invested into around 120 start-up companies, with significant undrawn capital remaining. This investment approach allows us to scale our capital, gain valuable innovation insights and reach a broader, more diversified range of growth businesses, thereby maximising the risk-adjusted return opportunity whilst delivering the greatest social and economic impact.”