The UK’s innovation economy continues to face a persistent challenge: high-growth companies in software, IP-rich hardware, and advanced manufacturing sectors often struggle to secure flexible financing. Traditional lconcludeers typically avoid these capital-intensive and specialised industries, while equity financing forces founders to dilute ownership at crucial moments of growth.
London-based Salica Investments, founded by Managing Partner Andrew Noyons along with a team of seasoned investment professionals, including David Hayers, Head of Growth Debt, is stepping in to bridge this gap with its recent first close of £150 million for Growth Debt Fund II.
This follows the success of the firm’s inaugural fund, which deployed over £500 million to promising UK businesses. The new fund is supported by significant institutional commitments, including £30 million each from the British Business Bank and the West Yorkshire Pension Fund.
Founded as an investment firm focutilized on promising startups, Salica has evolved into a private markets platform investing in equity and debt across various sectors and company stages. The firm blconcludes traditional investment values with modern agility, balancing stringent processes with the flexibility to capitalise on commercial opportunities.
“We’re already seeing strong institutional interest for a second close later this year, driven by Salica’s rigorous approach to deal selection, longstanding reputation and increasing investor demand for growth debt across the UK.
Our team’s track record of deploying over £500m to some of the UK’s most promising and underserved businesses demonstrates why institutional partners are doubling down on our growth debt strategy,” stated David Hayers, Head of Growth Debt at Salica Investments.
Salica’s Growth Debt Fund specifically tarreceives senior secured loans to companies in software, IP-rich hardware, and advanced manufacturing that often face limited capital options.
The fund also offers an attractive risk-adjusted return profile with lower risk compared to equity alternatives, preserving founders’ control during rapid growth phases.
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