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.
The bank says the fund aims to help 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.”
The first investment made through the new fund is a landmark £5 million package for Dragon Recycling Solutions Limited, enabling a management buyout and securing the future of the Tredegar-based business. The deal safeguards 120 skilled jobs and marks the third time the Development Bank has supported Dragon since 2016. The £5 million package includes £2.25 million of equity from the Wales Business Succession Fund and £2.75 million of debt from the Wales Flexible Investment Fund.
Led by a team of four, the buyout sees Beth Bysouth appointed Managing Director alongside Operations Director Gerard Howard, Financial Controller Mikiko Minty, and Compliance Director Tracy Medlicott, and incoming Chair Mark Pulman.
Dragon RS processes around 3 million smart meters annually, operating nationwide contracts with major energy suppliers.
Beth Bysouth said:
“The smart meter market continues to expand rapidly, driven by technological upgrades and evolving energy infrastructure. With the phase-out of 2G and 3G networks, legacy meters must be replaced with 4G/5G-compatible models, and the natural degradation of lithium thionyl chloride batteries means replacements are inevitable. Add to that higher repair rates and incompatibility across energy providers, and the opportunity for Dragon RS has never been clearer.
“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 in order to consolidate our market position and reinforce our commitment to sustainability.
“We’re thrilled to be taking Dragon RS into its next chapter. 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. Their backing gives us the confidence and resources to push boundaries, grow sustainably, and continue creating skilled jobs here in Tredegar.”
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.
“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 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 more than 1,000 jobs.
