§ Mr. LoveTo ask the Secretary of State for Trade and Industry what steps he is taking to increase the level of investment of pension funds in venture capital companies; and if he will make a statement. [133241]
§ Ms HewittThe Government share the concern about the level of investment that pension funds are currently making in venture capital.
In order to demonstrate to the investment community, including the pension funds, that good commercial returns can be made from investment in venture capital, the Government have established the UK High Technology Fund. The Government's commitment to invest £20 million into this fund has, to date, resulted in co-investment of £62 million from institutional co-investors, including 1096W pension funds, that are currently otherwise not investing in venture capital. The UK High Technology Fund is still raising money from institutional investors.
The Government have also demonstrated their concerns in this area by recently commissioning a review by Paul Myners, the Chairman of Gartmore Investment Managers, into any possible underlying structural factors which may deter institutional investment.