£25 million Wales Management Succession Fund set to back the next generation of Welsh business owners
A new £25 million Welsh Government fund will provide ambitious
Welsh managers and management teams with the funding they need to
buy established Welsh small and medium-sized businesses (SMEs) when
their current owners retire or sell up.
Launched today by Economy Minister Edwina Hart, the 5-year Wales
Management Succession Fund aims to help 20 Welsh SMEs create and
safeguard over 1,000 jobs under new ownership.
Managed by Finance Wales, 5 – 7-year debt and equity investments
of between £500,000 and £3 million will be available from the new
Finance Wales has already made succession investments totalling
£42 million from its existing funds to help new owners buy 127
established Welsh SMEs and demand for this type of investment has
increased in the last 3 years.
The Minister said: “Established small and medium-sized
businesses have skilled, loyal workforces and make a significant
contribution to the Welsh economy. They have often traded
successfully for many years and have the potential to achieve even
greater success in future.
“With an increasing number of Welsh business owners looking to
retire or sell their businesses, the Wales Management Succession
Fund will provide aspiring new owners with the funding they need to
buy these indigenous businesses and drive them on to even greater
Finance Wales will now work with Business Wales to help existing
business owners and potential new owners develop robust succession
plans to ensure a smooth transfer of ownership.
Welcoming the Minister’s announcement Giles Thorley, Finance
Wales’ new Chief Executive added: “The Wales Management Succession
Fund is yet another demonstration of the Welsh Government’s
commitment to Welsh SMEs. Between 2012 and 2016 the Welsh
Government has made over £120 million of growth finance available
to Finance Wales to invest in a range of funding requirements.
“Finance Wales can now provide ambitious Welsh managers and
management teams with tailored funding packages to buy their own
businesses. Established businesses can go from strength to
strength with new owners at the helm, safeguarding the jobs of
existing employees and going on to create new job opportunities as
The continued success of established Welsh SMEs can be felt
throughout the Welsh economy, positively impacting local supply
chains and communities.
Businesses wishing to apply for investment from the fund should
contact us on 0800 587 4140 or visit here for more information