Funds

The Opportunities Fund is a proposed £200 million growth-capital vehicle designed to address a persistent weakness in the UK funding market: the “missing middle” between seed finance and large institutional growth rounds. Many promising businesses have proved their products, won customers and developed credible revenue models, yet struggle to raise the £2 million to £10 million required to scale. They are often too mature for angel networks and SEIS-focused investors, but too small or early for major international venture funds. The Fund aims to become a specialist lead investor for these companies, providing capital, governance and strategic support when conventional funding routes are least effective.

The core investment range is expected to be £1 million to £10 million, with a preferred “sweet spot” of £3 million to £8 million. Capital would be deployed over approximately three to four years into UK businesses with demonstrated product-market fit, credible unit economics, capable management teams and realistic plans for 18 to 24 months of runway. Rather than backing speculative concepts, the Fund intends to select businesses showing evidence of customer retention, pilot conversion, recurring revenue or another clear form of commercial validation.

Its principal sectors are fintech, artificial intelligence and deep technology, healthtech and life sciences, B2B software, climate technology, and selected technology-enabled leisure and hospitality opportunities. These areas combine strong UK expertise with scalable business models, defensible intellectual property or data, and potential demand from strategic acquirers. The Fund also plans to source actively outside London, particularly in Manchester, Edinburgh, Cambridge, Bristol and other underserved regions. This geographic focus seeks both attractive entry valuations and access to high-quality companies that receive less investor attention. The strategy similarly recognises the potential of strong businesses led by women, minority and other underrepresented founders, subject to the same rigorous underwriting standards.

Structurally, the Fund is intended to operate as a segregated compartment within a Luxembourg Reserved Alternative Investment Fund, rather than as a standalone vehicle. The compartment would sit within the existing Hospice umbrella, giving its assets and liabilities legal separation from other compartments. This model is intended to reduce establishment costs, shorten the launch timetable and provide an established operational framework. Fund Craft is expected to act as the authorised alternative investment fund manager and central administrator, providing portfolio oversight, independent risk management, valuation processes, investor onboarding, anti-money-laundering controls and reporting. The Luxembourg structure also supports marketing to professional investors across the European Economic Area through the AIFMD passport.

The Fund is aimed at institutional and other well-informed investors, including pension funds, insurers, sovereign investors and family offices. To meet their standards, portfolio companies would be required to maintain clean capitalisation tables, reliable financial information, transparent data rooms, appropriate Companies House compliance and board-level reporting. Investment documents would broadly follow established BVCA practices and include suitable downside protections, potentially including liquidation preferences, anti-dilution provisions and milestone-based rights. ESG information, diversity measures and operational performance would form part of ongoing monitoring.

The Fund would not be limited to ordinary equity. Through the wider Highams Saaz platform, it may use convertible instruments, secured debt, revenue-based finance or hybrid structures where these better protect investors, generate income or limit unnecessary founder dilution. Every investment would be underwritten with a defined exit route, such as a strategic sale, private-equity secondary transaction, public offering or continuation vehicle. The aim is to combine capital with active governance and operational support so that portfolio companies become more resilient, scalable and attractive to later-stage buyers.

Overall, the Opportunities Fund seeks to pair the flexibility of a specialist UK growth investor with the governance, transparency and regulatory infrastructure expected by institutional capital, while helping high-potential UK businesses cross the scale-up funding gap.