A new £40 million Wales Business Succession Fund has been launched by the Development Bank of Wales to support management buyouts and buy-ins across the country—helping to maintain Welsh ownership, secure jobs, and ensure long-term business continuity.

Financed by the Welsh Government and the Clwyd Pension Fund, the fund offers structured equity and debt packages of between £500,000 and £5 million with terms of up to seven years. It is forecast to support more than 1,000 jobs across Wales and builds on the success of the £25 million Wales Management Succession Fund, which closes this year having supported 26 buyouts and safeguarded over 700 jobs since its launch in 2019.

The First Minister Eluned Morgan has welcomed the fund, saying: “The Wales Business Succession Fund was established to keep ownership of businesses in Wales, by supporting management teams to buyout owner managers either looking to retire or realise a return from their equity stakes.

“I’m delighted the Development Bank will use this new £40 million fund to get behind succession deals, which play a key role in keeping businesses rooted in their local communities. Our joint investment alongside the Clwyd Pension Fund will create more opportunities, unlock new growth potential and support the next generation of business owners in Wales.”

Giles Thorley, Chief Executive of the Development Bank of Wales, said: “With the backing of Welsh Government and the Clwyd Pension Fund as an institutional investor, the new Wales Business Succession Fund will build on the legacy of the Wales Management Succession Fund by supporting economic growth and safeguarding jobs in Wales.”

The Wales Business Succession Fund offers a mix of equity and debt to structure patient funding packages from £500,000 to £5 million. Terms of up to seven years are available to help fund succession investments. The fund is forecast to support over 1000 jobs.