The Development Bank of Wales has reached an investment milestone of £1bn which has supported more than 51,000 jobs since its creation eight years ago.
The bank, which is wholly-owned by the Welsh Government, was launched in November, 2017 - having evolved from what was Finance Wales.
The £1bn invested, through loans, equity investment and property related lending, has supported 51,089 jobs and generated £5.8bn in employment-based GVA (gross value added), while unlocking a further £363m in private sector co-funding. Equity investments have totalled £138m.
Since its launch the development bank has seen 30 equity exits - although 16 involved firms that had received backing from its predecessor Finance Wales.
The original equity investment from the successful exits totalled £50.74m. When also including fees, dividends and the repayment of loans provided to some of the equity recipient firms, the development bank calculated a 1.12 times return at £56.72m - which is considered a below par performance when bench marked against the wider private equity and venture capital sector.
Some 14 of the exits involved businesses that were only funded by the development bank. This involved a total equity investment of £13.77m, which on exit generated a 1.57 times return at £21.72m. It said its equity investments leveraged 2.31 times co-investment of £317.7m.
Its debt funding, with an average deal size of £19,000, accounted for just over half (£564m) of the £1bn. Property related, both residential and commercial, funding amounted to £298m.
Across its entire investment activities some 4,699 different businesses throughout Wales have benefitted from 5,184 investments. This includes £89m for 292 innovative tech ventures and £275m for Welsh property developers to build 2,302 new homes. Some 787 start-ups have received £61m in support. In North Wales, 1,078 businesses have benefitted from investment totalling £240.4m with a further £135.3m in co-investment.
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Some 1,399 businesses in Mid and West Wales have received £323.4m, which has leveraged a further £143.2m in co-investment. South East Wales has seen direct investment of £436.5m and co-investment of £375.5m for the 2,222 businesses backed by the bank.
Chair of the Development Bank of Wales, Sally Bridgeland, said; “Our investments have supported thousands of businesses at every stage of their growth journey — driving productivity, innovation, and job creation.
“With teams embedded across Wales, we take a relationship-driven approach that contrasts with the more transactional nature of traditional finance. These results demonstrate the power of sustainable capital to deliver long-term economic value; bringing ambitions to life and delivering economic benefits for people, businesses and communities across the whole of Wales.”
The bank’s chief executive, Giles Thorley, said: “As we approach the Wales Investment Summit, this milestone reflects the transformative impact of our work since 2017.
“I’m incredibly proud of the footprint we’ve built, reaching every part of Wales. This achievement is a testament to the hard work and ambition of the businesses and entrepreneurs we’ve supported and their drive and ambition. I also want to recognise the dedication of my colleagues, whose personal commitment continues to deliver real impact in communities across the nation.
“By leveraging £636m in private co-investment and deploying recyclable funds, we’re building a legacy of growth and resilience for future generations. £1bn invested in Welsh businesses is £1bn driving Wales forward—fuelling ambition, powering innovation, and unlocking opportunity in every town and city across our nation.”
Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans, said:“If companies are to grow, it’s vital they can access finance. Since we set up the development bank in 2017, it has acted as a social impact investor, making sure its investments support our priorities, from encouraging entrepreneurship to building a greener economy.
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“Reaching the £1bn milestone makes me proud of the bank’s role in driving economic development. By securing 50,000 jobs, the bank shows how targeted investment can open up opportunities and support inclusive communities across Wales.”
First Minister Eluned Morgan said: “The development bank is part of the support we offer for companies that want to expand and innovate. Wales is a great place to set up a business or invest in projects and this is part of the message I shall be sharing with delegates from across the globe at the Wales International Summit in December.”