Former 3i partner Christopher Rowlands will help to decide if the government needs to intervene to help firms secure growth capital.
The review follows fears that businesses seeking between ВЈ250k and ВЈ2m have had problems attracting equity finance.
The Growth Capital Review is the first measure to be taken forward from the government's 'New Industry, New Jobs' strategic plan for economic recovery.
Business Secretary Lord Mandelson said: "We have taken action to help businesses access short term finance to survive the global downturn, and to build our economic future.
ADVERTISEMENT
"This review will identify if there is a role for Government in facilitating public and private investment to address gaps in the market.
"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."
