A new £50m equity fund to support the growth of SMEs in the Cardiff Capital Region, has been launched. The fund, known as Innovation Investment Capital (IIC), is being project managed by professional advisory firm PwC, working alongside Capricorn Fund Managers as the alternative investment fund manager.
It will provide equity investments ranging from £2m to £7m to support the scale-up of firms across the city region - which covers the ten local authorities of south-east Wales stretching from Bridgend to Monmouthshire. It could also be used to attract new firms into the region and will seek to secure co-investors, including the like of the Development Ban of Wales, when backing firms on a deal by deal basis. IIC will take more than 10% stakes in firms.
The fund is being financed from the city region’s £1.3bn City Deal, which is co-funded by the UK and Welsh governments.
Welsh Secretary David TC Davies, said: “I’m delighted that £50m of UK Government funding is being used to kickstart and grow entrepreneurial businesses in the Cardiff Capital Region. Our focus is on encouraging investment in Wales, growing the economy and creating well paid jobs.
“This new fund will help to deliver our priorities. I wish them every success and look forward to seeing the results.”
John-Paul Barker, regional market leader for PwC in Wales and the west of England, said: “IIC will change the landscape for scalable, entrepreneurial businesses in South Wales, and PwC is very proud to be able to play a part in its success. The region is home to a rich community of innovators; this fund will provide the necessary support and investment to supercharge their growth and turn them into national or international players.”
Kellie Beirne, director of the Cardiff Capital Region City Deal, said: "IIC has been developed as a response to the overwhelming need for innovation-led growth in the capital region. This £50m commitment to nurturing innovation is a testimony to our desire to champion the enterprises that bring strong comparative advantage to Cardiff Capital Region - showcasing our deep determination to connect capability by providing access to the long-term capital that is so central to scaling up a high-performing innovation ecosystem.
“We are delighted to have selected PwC and Capricorn Fund Managers to deliver IIC, and look forward to working together to help our SME’s deliver on their growth ambitions.”
The UK Government’s economic development bank, the British Business Bank, said its £130m investment fund to back Welsh SMEs will be launched next year.
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