The BGF has reported record investment levels in Wales backing the growth potential of firms.
The UK’s most active investor, previously known as the Business Growth Fund, said it invested more than £26m in equity last year in Wales – the highest annual amount since it was established in 2011 – while also securing a successful exit.
Deals completed by BGF’s Cardiff-based team in 2021 including a £14m investment in Ammanford-based manufacturer Victorian Sliders – its largest ever deal in Wales.
The investment will enable Victorian Sliders’ management team to double capacity at its production facility and further invest in its recycling plant, helping it to cement its position as Europe’s largest specialist manufacturer of uPVC vertical-sliding sash windows.
BGF also completed a multi-million-pound investment in Swansea-based Character.com. Founded in 2009 by husband-and-wife team Stephen and Karen Hewitt, the children’s clothing retailer featured on the Sunday Times Fast Track 100 for four consecutive years. BGF’s investment will be used to support the long-term growth plans of the business.
It also made a profitable exit from DevOpsGroup – the Cardiff-based digital transformation and cloud consultancy. BGF invested £3m in DevOpsGroup in 2018 to fuel the acceleration of its consultancy services and build on its strong sales momentum.
The exit of DevOpsGroup, which represented BGF’s first exit in Wales, yielded an undisclosed value but a high return on BGF’s capital. DevOpsGroup was acquired by a company owned by Nasdaq-listed Amdocs.
The strong performance in Wales comes off the back of a record year across the UK and Ireland, which saw BGF complete 67 new deals and invest £600m in total.
Ned Dorbin, head of BGF in Wales and the south west, said: “Wales is home to many brilliant businesses which have shown themselves to be particularly resilient to the ongoing challenges faced by the pandemic. The businesses we back are committed to ambitious growth plans, both in the UK and internationally, and as such we expect the ongoing deal momentum to continue well into 2022 and beyond.
“BGF’s success in Wales reaffirms the value of our model in supporting ambitious management teams to grow a larger business ahead of their eventual exit – it is a solution that works well.
“As long-term minority partners we’re committed to working in partnership with the businesses we back through funding and strategic support.
“We’re confident the region’s businesses have the growth potential, talent, and appetite to make 2022 another good year.”
BGF is a long-term investor, making initial investments between £1m to £15m for a minority equity stake.
