A government-backed fund's strategy was questioned by well-known private equity heads at yesterday's industry summit, with longstanding critic Luke Johnson, the entrepreneur behind Pizza Express, saying it has been a "massive missed opportunity" and a "classic mistake by politicians".

Dubbed the "new 3i", the Business Growth Fund is a £2.5 billion UK government-backed initiative set up by the UK's five biggest banks and the British Bankers Association to invest in small and medium sized firms and stimulate the UK economy.