Cwestiwn ysgrifenedig WQ88774

The Development Bank of Wales operates three main funds which provide finance to support business succession with the key objective of preserving viable Welsh businesses where alternative funding cannot be secured or would result in the business being relocated.

The first of these is the Wales Management Succession Fund, which supports management team buyouts by taking an equity stake in the business. The other two funds are the EU backed Wales Business Fund, which completes its investment term in December 2023, and the Welsh Government capitalised, Wales Flexible Investment Fund, which will continue to provide finance for succession investments up to 2031. These two funds provide loans (and equity) for succession deals which include Employee Buyouts, Management Buyouts, Buy-in Management Buyouts, Management Buy ins and other business acquisitions.

Between, 2017/18 and 2022/23, the bank funded over 199 succession investments worth over £72.4m. A condition of its investment is that a business must remain in Wales for the life of its investment term, which can be up to 10 years. For the duration of its investment the business will be allocated a specific portfolio executive who will work with the business to maximise its growth potential. By its nature, this has the additional effect of rooting the business in the Welsh ecosystem through supply chain networks, professional advisers and wider localised benefits- working closely with the sector/regional teams in Welsh Government.

The Development Bank submits quarterly performance reports to the Welsh Government for each of the funds. In addition, the Welsh Government meets regularly with the bank to discuss fund performance against its key objectives.