The government has put a former private equity chief in charge of its initiative to help small and medium businesses access capital to grow.

Veteran capital expert and former 3i Asia Chairman Christopher Rowlands will lead the Growth Capital Review, which aims to identify if there is a need for a taxpayer-funded venture capital fund to finance growing companies.

The proposal has secured the support of Gordon Brown and small business minister Baroness Vadera.

It follows government promises to stimulate growth using private sector resources and expertise to bridge the funding gap.

"This review will identify if there is a role for government in facilitating public and private investment to address gaps in the market," said business secretary Peter Mandelson.

"Our priority will be to ensure that high-growth businesses, which will be very important for the economy, are able to secure the capital they need," he added.

The review will consult businesses, investors and government before reporting to Mandelson ahead of the Pre-Budget report in the autumn.

© Crimson Business Ltd. 2009