The Business Growth Fund, the UK growth investor set up to stimulate the country’s economy, has made its first investment in a publicly listed company, as it looks to broaden the range of companies it can invest in.

The firm, set up as part of the "Merlin" agreement between the government and banks, with a remit to invest in UK SMEs, has provided £10 million to Victoria plc, a manufacturer of carpets and floorings.