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 º£½ÇÊÓƵ 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.
