NatWest makes first venture LP bet, backing Phoenix Court's UK funds
What's the deal? NatWest has made its first direct limited partner (LP) commitment to an independently managed venture capital fund, investing across Phoenix CourtDealroom has a profile for this one. Try Dealroom →'s family of funds — LocalGlobeDealroom has a profile for this one. Try Dealroom →, Latitude, and SolarDealroom has a profile for this one. Try Dealroom →. The move backs UK companies from seed to scale-up stage. NatWest did not disclose the size of the investment.
Who's Phoenix Court? The London venture firm invests in high-growth, innovation-led companies, providing long-term backing to founders as they grow and scale. Its three funds span the innovation lifecycle, from seed through scale-up.
Why now? The commitment follows the April launch of NatWest Venture BankingDealroom has a profile for this one. Try Dealroom →, which aims to support venture-backed businesses across their full lifecycle. The bank says the deal complements its Open Innovation team, which invests in and partners with startups.
What's the endgame? NatWest wants to be more than a banking provider to founders and investors. "We want to be a long-term partner to the founders, investors and businesses building the UK's next generation of category defining companies," said chief executive officer Paul Thwaite. He argues British firms too often look overseas for capital.
By the numbers: Phoenix co-founder and chair Saul Klein pointed to the firm's Solar pilot as proof of the opportunity. Its 18 companies generate £5 billion in annual revenue and have created more than 8,500 UK jobs.
The signal: Klein framed the deal as a bid to keep returns from UK innovation at home. "This meaningful partnership with British financial institutions like NatWest will help us back more exceptional companies from seed to scale, keeping more of the jobs, prosperity and returns they create in Britain," he said. He noted Britain has built the world's third-largest innovation economy, yet many companies still lack the domestic capital to scale there.
Image credit: EA40000
