The Development Bank of Wales has won a contract to manage a new £19m debt fund in the South West of England.
As part of the British Business Bank’s new £200m investment fund for the English region development bank subsidiary, FW Capital, will manage its larger debt element.
The contract is one of a number awarded by the British Business Bank, the economic regeneration bank of the UK Government for its new regional fund, which will also provide micro loans and equity investment. Other fund managers appointed to its various elements, following a competitive procurement process, include Maven, SWIG Capital and FSE Group.
FW Capital, which also runs funds in the North of England, has a mandate to provide debt to SMEs in the northern part of the South West with a focus on Bristol, Gloucestershire, north and north-east Somerset and Wiltshire. The debt per deal will range from £100,000 to £2m with terms ranging from one year to five.
The Development Bank for Wales did not provide comment on its new fund win.
The British Business Bank is currently overseeing a live competitive procurement process for its £130m Wales Fund. It will provide funding for firms across Wales, with a micro loan element, one for larger debt finance and an equity pot of £50m.
It is understood that the development bank, which is wholly-owned by the Welsh Government, has bid for all three elements of the Wales fund. The fund is scheduled to go live in the autumn.
