FlowwFunds: Simplifying pension fund deployment into venture

As part of the UK Chancellor’s Mansion House Reforms, British pension funds have committed to allocating more capital into venture. Here we see how FlowwFunds, a newly launched full funds management solution which sits on the Floww platform, is using technology in ways that can facilitate these commitments.

The 2023 Autumn Statement is expected to be a pivot point for UK Chancellor Jeremy Hunt’s plans to allocate more pension fund investment into VC. As part of the so-called ‘Mansion House Reforms’, the British Private Equity and Venture Capital Association (BVCA) seeks to connect pension funds and VC firms in a ‘Venture Capital Investment Compact’, so innovative private companies can unlock the vast potential of as-yet untapped pension fund capital.

This, however, is no mean feat. The stance of pension funds looking to allocate more funds into the VC asset class is one that is very much needed. That said, the actual execution of the Mansion House Reforms commitment is rather complex. A total of £50bn is expected to be deployed by 2030, with nine of the UK’s largest pensions recently agreeing to allocate at least 5% of their assets into startups and venture firms over the next seven years.

Such a significant sum presents a significant challenge – how do pension funds deploy that level of capital into the ecosystem, track its progress, and also access liquidity in the private market?

FlowwFunds simplifies distribution

Floww sees technology playing a vital role here. Floww’s newly launched full fund management solution – FlowwFunds – has been built to address these compatibility problems and give the pension industry easy allocation into VC funds.

Access to a detailed insights across a wide range of sectors and companies allows for precise deployment and tracking of these large amounts of capital, ensuring effective governance.

Floww has resolved both technical as well as structural problems at the foundation of this large-scale ambition.

Additionally FlowwFunds addresses the outstanding liquidity challenges that the current venture capital industry faces. In partnership with London Stock Exchange, Floww – through the FlowwFunds solution – has the power to unlock a true working secondary market for companies and funds.

Floww moves capital with the speed of innovation, and FlowwFunds addresses a core challenge of venture capital: the structuring, raising and deployment of funds. In doing so, FlowwFunds addresses a compatibility problem between pension funds and VC, simplifying deployment for the pension industry and unlocking further growth and innovation across the private markets.

Find out more about FlowwFunds