Private equity news wales – £130m Investment Fund for Wales set to launch Autumn 2023
The British Business Bank is set to launch a £130 million investment fund this autumn, aimed at driving the growth of small and medium-sized businesses in Wales.
The Investment Fund for Wales is one of a series of Nations and Regions Investment Funds being launched by the British Business Bank, and will provide equity and loan finance to Welsh businesses.
The fund will target smaller businesses, with three tiers of investment available to support growth and innovation.
The fund is being launched in response to concerns over the funding gap faced by smaller businesses in Wales, and aims to address this by providing much-needed investment.
The British Business Bank is inviting proposals from potential fund managers to operate the new fund, and is looking for experienced managers with a strong track record in delivering successful investment strategies.
Private sector co-investment is also expected to play a key role in the fund, with the aim of attracting additional investment to support Welsh businesses.
Key Takeaways
- The British Business Bank is launching a £130 million investment fund this autumn to support the growth of small and medium-sized businesses in Wales.
- The fund will provide equity and loan finance to Welsh businesses, with three tiers of investment available to support growth and innovation.
- The British Business Bank is inviting proposals from potential fund managers to operate the new fund, and private sector co-investment is expected to play a key role in attracting additional investment to support Welsh businesses.
Overview of the £130m Investment Fund
The British Business Bank is preparing to launch a £130 million investment fund aimed at driving the growth of small and medium-sized businesses in Wales.
The Investment Fund for Wales is set to launch in the autumn of 2023 and is one of a series of Nations and Regions Investment Funds being launched by the British Business Bank.
The fund will be managed by a fund manager appointed by the British Business Bank, who will be responsible for investing the funds in eligible businesses in Wales.
The fund aims to provide equity and debt finance to businesses with high growth potential, particularly those that are struggling to access finance from traditional sources.
The launch of the Investment Fund for Wales is expected to be a major boost for the Welsh economy, providing much-needed support to businesses looking to grow and expand.
The fund is expected to create new jobs and help to drive innovation and productivity across a range of sectors, including manufacturing, technology, and creative industries.
The Investment Fund for Wales will be open to applications from eligible businesses in Wales, with a focus on those that have the potential to create high-quality jobs and drive economic growth. The fund will also be open to businesses in a range of sectors, including start-ups, early-stage businesses, and established companies looking to scale up.
Overall, the launch of the £130m Investment Fund for Wales is a significant development for the Welsh economy, providing a much-needed boost to businesses looking to grow and expand. With the fund set to launch in the autumn of 2023, businesses in Wales will soon have access to a new source of finance that could help them to achieve their growth ambitions and drive economic growth across the region.
The Role of British Business Bank
The British Business Bank is a government-owned development bank that has been established to support small and medium-sized businesses in the UK.
It aims to provide finance and support to businesses that are struggling to access finance from traditional sources.
The British Business Bank is on course to launch a £130 million investment fund this autumn, aimed at driving the growth of small and medium-sized businesses in Wales.
The Investment Fund for Wales is one of a series of Nations and Regions Investment Funds being launched by the British Business Bank. The fund has been designed to provide long-term patient capital to Welsh businesses, which will help them to grow and create jobs. It will be managed by an external fund manager who will be selected through a competitive process.
The British Business Bank is inviting proposals from potential fund managers to operate the new fund.
The fund manager will be responsible for investing the money in Welsh businesses, and for ensuring that the fund achieves its objectives. The Investment Fund for Wales is part of the British Business Bank’s wider strategy to support regional economic growth across the UK.
The bank has already launched similar funds in other regions, including the Northern Powerhouse Investment Fund and the Midlands Engine Investment Fund.
Overall, the British Business Bank is playing a crucial role in supporting small and medium-sized businesses across the UK.
Its investment in the Welsh economy through the Investment Fund for Wales will help to create jobs, drive economic growth and support the development of innovative new businesses in the region.
Potential Fund Managers
The British Business Bank is inviting proposals from potential fund managers to operate the new £130m Investment Fund for Wales.
The fund aims to drive the growth of small and medium-sized businesses in Wales, and the British Business Bank is looking for experienced fund managers to help achieve this goal.
The fund will be part of a series of Nations and Regions Investment Funds being launched by the British Business Bank, and it will be the first of its kind in Wales.
The fund will be managed by a private sector fund manager, who will be responsible for investing the money in Welsh businesses. Potential fund managers will need to demonstrate a strong track record in managing funds, as well as experience in investing in small and medium-sized businesses.
They will also need to show a good understanding of the Welsh business landscape and have a network of contacts in the region.
The British Business Bank is looking for fund managers who can provide a range of services, including deal origination, due diligence, and portfolio management.
They will also need to be able to work closely with the British Business Bank to ensure that the fund is managed in accordance with its objectives.
Overall, the British Business Bank is seeking fund managers who are confident and knowledgeable in their approach, and who can help to drive the growth of small and medium-sized businesses in Wales.
The deadline for submitting proposals is yet to be announced, but it is expected to be in the coming months.
Investment Types: Equity and Loans
The Investment Fund for Wales will offer a range of commercial finance options, including equity and loans.
The fund will be available to small and medium-sized businesses in Wales, with small loans starting from £25,000 and equity investment up to £5 million.
Equity Investment
Equity investment involves buying shares in a company, giving the investor a stake in the business. The investor then benefits from any profits the company makes, and may also have a say in how the company is run.
Equity investment is a long-term investment, with the potential for high returns. However, it also involves a higher level of risk than other forms of investment.
The Investment Fund for Wales will offer equity investment up to £5 million, providing businesses with the capital they need to grow and expand.
This type of investment is particularly suitable for businesses with high growth potential, as it allows them to access the funds they need without taking on debt.
Loans
Loans are a type of debt financing, where a business borrows money from a lender and agrees to pay it back with interest.
The Investment Fund for Wales will offer smaller loans starting from £25,000, providing businesses with the capital they need to invest in new equipment, expand their premises, or hire new staff. Private debt lending is also an option for businesses looking for financing.
Private debt lenders provide loans to businesses that are not listed on the stock market, and may offer more flexible terms than traditional lenders.
Overall, the Investment Fund for Wales offers a range of financing options to suit the needs of small and medium-sized businesses in Wales. Whether businesses are looking for equity investment or loans, the fund provides a valuable source of capital that can help them grow and succeed.
Targeting Smaller Businesses
The Investment Fund for Wales aims to drive the growth of small and medium-sized businesses in Wales.
The fund is designed to support ambitious business owners who want to take their businesses to the next level.
The £130 million investment fund is expected to provide financing options to smaller businesses that may not have access to traditional sources of funding.
The British Business Bank, which is responsible for the fund, has invited proposals from potential fund managers to operate the new fund.
The Investment Fund for Wales is part of a series of Nations and Regions Investment Funds being launched by the British Business Bank. The fund is expected to target businesses across a range of sectors, including manufacturing, technology, and tourism.
The fund will provide a range of financing options, including debt and equity financing, to help businesses grow and create jobs in Wales.
It is expected to be a significant boost for the Welsh economy and will help to create a more diversified and resilient business landscape in the region.
Overall, the Investment Fund for Wales is a positive development for smaller businesses in Wales. The fund will provide much-needed financing options to help businesses grow and create jobs in the region.
Regional Impact and Distribution
The £130m Investment Fund for Wales is part of a series of Nations and Regions Investment Funds being launched by the British Business Bank.
The fund aims to drive the growth of small and medium-sized businesses in Wales, which will have a positive impact on the region’s economy.
The British Business Bank is seeking proposals from potential fund managers to operate the new fund. The fund is expected to launch in the autumn of 2023.
The fund will be managed by a professional team, which will ensure that the fund is distributed effectively and efficiently. The fund will be available to businesses in Wales, which will help to create jobs and boost the economy.
The fund will be distributed across a range of sectors, including manufacturing, technology, and healthcare.
The fund will also support businesses in rural areas, which will help to address the issue of regional inequality.
The fund is part of the British Business Bank’s commitment to supporting regional investment. Other regions that have received funding include the Midlands, Scotland, Northern Ireland, and the South West of England.
The Midlands Engine Investment Fund and the Northern Powerhouse Investment Fund are examples of other regional funds that have been established by the British Business Bank.
The Cornwall and the Isles of Scilly Investment Fund is another example of a regional fund that has been established to support businesses in a specific area. The fund is managed by the Cornwall and Isles of Scilly Local Enterprise Partnership and provides funding to businesses in Cornwall and the Isles of Scilly.
In summary, the £130m Investment Fund for Wales is part of a wider commitment by the British Business Bank to support regional investment.
The fund will have a positive impact on the Welsh economy by creating jobs and supporting businesses in a range of sectors. The fund will also help to address the issue of regional inequality by supporting businesses in rural areas.
Addressing the Funding Gap
The new £130m Investment Fund for Wales is aimed at addressing the funding gap for small and medium-sized businesses in Wales.
The funding gap refers to the difficulty that smaller businesses face when trying to secure funding for their operations.
The gap exists because traditional commercial finance options are often not accessible to smaller businesses due to their size and lack of assets to offer as collateral. The Investment Fund for Wales will provide new funding opportunities for small and medium-sized businesses in Wales.
The fund will offer smaller loans to businesses that may not be able to secure larger loans from traditional commercial finance options.
By offering smaller loans, the fund will help bridge the funding gap and enable smaller businesses to access the capital they need to grow and expand.
The Investment Fund for Wales will also provide alternative finance options for businesses that may not have access to traditional commercial finance options.
Alternative finance options can include crowdfunding, peer-to-peer lending, and invoice financing. These options can be especially useful for businesses that may not have the assets or credit history to secure traditional commercial loans.
Overall, the Investment Fund for Wales is a positive development for small and medium-sized businesses in Wales. By addressing the funding gap and providing new funding and finance options, the fund will help support the growth and success of businesses in Wales.
Three Tiers of Investment
The Investment Fund for Wales will operate across three tiers: smaller loans (£25,000 – £100,000), debt (£100,000 – £2 million), and equity (up to £5 million).
The three tiers provide a range of financing options for small and medium-sized businesses in Wales. The first tier of the Investment Fund for Wales provides smaller loans ranging from £25,000 to £100,000.
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This tier is designed to support start-ups and early-stage businesses with limited financial resources.
The loans can be used for a variety of purposes, such as purchasing equipment, hiring staff, or expanding a business. The second tier of the Investment Fund for Wales provides debt financing ranging from £100,000 to £2 million.
This tier is designed to support established businesses that require larger amounts of capital to fund their growth.
The debt financing can be used for a variety of purposes, such as expanding operations, acquiring new businesses, or investing in research and development. The third tier of the Investment Fund for Wales provides equity financing up to £5 million.
This tier is designed to support high-growth businesses that require significant amounts of capital to fund their expansion.
The equity financing can be used for a variety of purposes, such as expanding into new markets, developing new products and services, or acquiring new businesses.
Overall, the Investment Fund for Wales provides a range of financing options for small and medium-sized businesses in Wales. The three tiers of financing provide flexibility and support for businesses at different stages of growth. The Investment Fund for Wales is an important initiative that will help to drive economic growth and create jobs in Wales.
Growth and Innovation
The new £130m Investment Fund for Wales is expected to drive growth and innovation in small and medium-sized businesses in Wales.
The fund will provide much-needed investment capital to Welsh businesses, which will help them to expand, create jobs, and drive economic growth in the region.
The fund is aimed at businesses that are innovative and have the potential for growth. It will provide funding for a range of different types of businesses, including those in the technology, manufacturing, and service sectors.
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By investing in these businesses, the fund aims to stimulate innovation and create new jobs in Wales. In addition to providing funding, the Investment Fund for Wales will also offer support and guidance to businesses.
This will help them to develop their products and services, improve their operations, and grow their customer base. By providing this support, the fund aims to help businesses to achieve their growth potential and become more competitive in their markets.
Overall, the Investment Fund for Wales is expected to have a significant impact on the Welsh economy. By providing funding and support to innovative and growing businesses, the fund aims to create new jobs, stimulate economic growth, and drive innovation in the region.
Private Sector Co-Investment
The Investment Fund for Wales is set to launch this autumn with the aim of driving the growth of small and medium-sized businesses in Wales.
The British Business Bank is inviting proposals from potential fund managers to operate the £130 million investment fund.
The fund will offer a range of commercial finance options with loans from £25,000 to £2m and equity investment of up to £5m. Private sector co-investment will be a key feature of the Investment Fund for Wales.
This means that the fund will invest alongside private investors, including venture capital firms and angel investors, to provide a greater pool of capital for Welsh businesses.
Private sector co-investment is an important way of leveraging additional funding for businesses, as well as providing a signal of confidence in the business from private investors.
The Investment Fund for Wales will also offer venture solutions to businesses. Venture solutions are tailored investment packages designed to meet the specific needs of businesses at different stages of their growth journey.
These packages can include equity investment, debt finance, and other forms of financing. The aim is to provide businesses with the right type of funding at the right time to support their growth plans. Private sector co-investment and venture solutions are just two of the ways in which the Investment Fund for Wales will support the growth of Welsh businesses.
By working in partnership with private investors, the fund will be able to provide a greater pool of capital to businesses, as well as access to expertise and networks.
This will help to create a thriving ecosystem for Welsh businesses, driving growth and prosperity for the region.
The Autumn Statement and Devolved Nations
In the 2021 Autumn Statement, then-Chancellor Rishi Sunak announced the launch of a series of regional investment funds aimed at driving the growth of small and medium-sized businesses across the UK.
One of these funds is the £130m Investment Fund for Wales, which is set to launch in autumn 2023.
The British Business Bank is responsible for managing the Investment Fund for Wales, and it has invited proposals from potential fund managers to operate the new fund. The fund will provide finance to businesses in Wales that are looking to grow and create jobs, and it will be available to businesses across a range of sectors.
The Investment Fund for Wales is part of a wider push to boost economic growth in the devolved nations of the UK. In addition to the fund for Wales, the British Business Bank is also preparing to launch a £70m Investment Fund for Northern Ireland.
These funds are part of a broader effort to support businesses across the UK, and they are designed to complement the existing Northern Powerhouse Fund, which supports businesses in the North of England.
The devolved nations of the UK have unique economic challenges and opportunities, and the regional investment funds are designed to address these challenges and unlock growth. The Investment Fund for Wales will help to support businesses in Wales and create new opportunities for growth and innovation.
Frequently Asked Questions
What is the purpose of the £130m Investment Fund for Wales?
The purpose of the £130m Investment Fund for Wales is to drive the growth of small and medium-sized businesses in Wales.
The fund is aimed at supporting businesses that have the potential to create jobs, boost productivity, and contribute to the Welsh economy.
Who is eligible to apply for funding from the Investment Fund?
The Investment Fund is open to small and medium-sized businesses in Wales.
The fund is aimed at supporting businesses that have the potential to create jobs, boost productivity, and contribute to the Welsh economy.
What types of projects will the Investment Fund support?
The Investment Fund will support a wide range of projects, including those in the manufacturing, technology, and creative industries.
The fund is aimed at supporting businesses that have the potential to create jobs, boost productivity, and contribute to the Welsh economy.
When is the application deadline for the Investment Fund?
The application deadline for the Investment Fund has not yet been announced. However, businesses are encouraged to keep an eye on the British Business Bank website for updates.
How will the Investment Fund impact the Welsh economy?
The Investment Fund is expected to have a positive impact on the Welsh economy by supporting small and medium-sized businesses that have the potential to create jobs, boost productivity, and contribute to economic growth.
What is the expected return on investment for the Investment Fund?
The expected return on investment for the Investment Fund has not yet been announced. However, businesses are encouraged to keep an eye on the British Business Bank website for updates.
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