Diaspora engagement initiative GlobalWelsh is exploring establishing its own fund.
While at an early stage, founder and chief executive of the not-for-profit venture, Walter May, said any fund would be targeted at providing growth capital and expertise for indigenous firms, while also helping to attract new investment into Wales.
He said that there was already significant private equity investor and professional advisory expertise amongst its growing membership, including its patrons, to support the creation of a dedicated fund raised from the diaspora.
Mr May: “A fund is certainly an ambition. We would like to do it sooner rather than later, but at this stage there is no business plan worked up. So it will require heavy lifting and certainly if we do, it wouldn’t be this year or next.”
He said that many of its members, like former Just Eat chief executive and now chairman of the rugby region the Newport Gwent Dragons, David Buttress, were regular equity investors.
Mr May added: “In our community we have investors, but they tend to invest where they live. So, the next time, having a fund could provide an attractive platform for them to invest in say a high-growth potential firm in Wales, or bringing a company here. However, they are not going to invest just because a business is based here or is moving to Wales, bt because it is a great business.”
He said any fund would not be in competition with, but be complementary to institutional investors already in the Welsh marketplace, including the Development Bank of Wales, which itself is a member of Global Wales.
Mr May said: “Chief executive of the development bank, Giles Thorley, thought it [possible fund] was a great idea and very much complementary to its investment activities where they are looking to leverage more private sector investment on deals.”
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He said, based on its growing membership, a regulatory approved fund running into several million pounds could potentially be raised.
Last year GlobalWelsh launched its investor portal, giving start-up businesses the opportunity to pitch for investment to invited Welsh diaspora. The pitches, including one at the Gherkin building in London, were positively received and could potentially lead to investment deals.
The diaspora organisation is also looking to establish more hubs in cities across the world, with its latest addition being in Beijing, alongside existing hubs in Tokyo and London. Its next hub, in Dublin, will open shortly.
“We have an exciting pipeline of other city hubs including in North America and Australasia, said Mr May, who confirmed GlobalWelsh is also providing support and expertise to a number of new diaspora projects globally, including one in Denmark.
As part of its new international strategy the Welsh Government is looking to develop a diaspora offer. This could see it being outsourced.
As for GlobalWelsh working in a joined up approach with Welsh Government, Mr May he said: “The best way for diaspora engagement is to work in partnership with government. However, for whatever reason, we haven’t had a meaningful conversation on that with the Welsh Government.
“We could scale-up with the right kind of relationship with them. It is not about money, but things like leveraging its global network of offices.
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“What we have is a very specific understanding of what diaspora engagement is and how to do it. We are not interested in jollies, but focused solely on economic impact and bringing economic benefit to Wales.”
GlobalWelsh, through its website and social media interactions, has a Welsh diaspora community of around 10,000.