Wales Business Fund Economic Appraisal

Question: Would a Wales Business Fund offer value for money?

Following on from a successful £160m SME investment fund, the Welsh Government, Finance Wales and Welsh European Funding Office proposed a successor fund offering debt, equity and mezzanine investment on a commercial basis to SMEs in Wales. To secure funding the partners needed objective evidence of market failures in the finance arena and a review to ensure the business plan offers value for money for the taxpayer.

Solution: independent and rigorous appraisal of rationale and value

Regeneris reviewed the expected economic impact and value for money of this new fund. We reviewed the relevance and robustness of the assumptions and underpinning evidence on uptake and returns from investment. Working with the project partners, our team tested the business plan, proposed fund size and composition, funding sources, geographical and sectoral focus, modelling assumptions, value for money and governance arrangements.

Impact: a stronger offer, supported by government and helping SMEs to grow

Our appraisal work helped to maximise the expected efficiency, effectiveness and value of the successor fund to the tax payer. The fund was successfully launched in September 2016 and will provide £136m investment to Welsh SMEs over seven years.