£40 Million Fund Launched to Support Welsh Business Buyouts and Safeguard Jobs
The Development Bank of Wales has unveiled a new £40 million Wales Business Succession Fund, designed to facilitate management buy‑outs and buy‑ins across the country. The fund aims to ensure long‑term business continuity, preserve Welsh ownership, and safeguard skilled jobs.
Financed jointly by the Welsh Government and the Clwyd Pension Fund, the initiative provides structured equity and debt packages ranging from £500,000 to £5 million, with terms of up to seven years. The fund is expected to support over 1,000 jobs across Wales and builds on the success of the £25 million Wales Management Succession Fund, which concludes this year after supporting 26 business buyouts and safeguarding over 700 jobs since 2019.
“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.”
The fund’s first investment—a £5 million package for Tredegar‑based Dragon Recycling Solutions Limited—enabled a management buyout that secures 120 jobs. The package includes £2.25 million of equity from the new fund and £2.75 million in debt from the Wales Flexible Investment Fund. This marks the third time the Development Bank has backed Dragon RS since 2016.
Led by new Managing Director Beth Bysouth alongside Operations Director Gerard Howard, Financial Controller Mikiko Minty, Compliance Director Tracy Medlicott, and incoming Chair Mark Pulman, Dragon RS processes approximately 3 million smart meters annually for major energy providers.
“The support from the Development Bank of Wales has been transformational—not just financially but in the belief they’ve shown in our vision, team, and potential.
The smart meter market continues to expand rapidly… Our specialist services such as Use Case 4 processing and LTC battery recycling have already garnered strong interest, and we’re excited to expand our triage, repair and recycling services.”
“Dragon RS is a standout Welsh business rooted in Tredegar with a strong commitment to sustainability and innovation. It’s precisely the kind of business that we’re proud to support.”
The new fund forms part of the Development Bank’s broader mission to enable economic growth, job creation, and sustainable business succession throughout Wales.
To learn more about the funds currently managed by the Development Bank of Wales, visit the Funds We Manage page.