Foresight Group, the fund manager for the equity element of the British Business Bank's £130m Investment Fund for Wales, has expressed optimism about deal flow for the remainder of 2026, citing a robust pipeline of opportunities.
The equity component, launched in November 2024, is managed by Foresight, a private and real assets manager. Alongside this, the fund includes a large debt facility of up to £2m per deal managed by FW Wales, a subsidiary of the Development Bank of Wales, and a small debt component of up to £100,000 managed by BCRS Business Loans.
Initially, £50m was allocated for equity investments, with an additional £40m held in reserve. The British Business Bank confirmed that most of the reserve has now been allocated, though it declined to disclose the exact split, stating that the remaining balance will be deployed during the investment period.
Phil Sampson, principal of the Investment Fund for Wales at Foresight, noted growing demand among Welsh firms for equity to support growth. Recent deals include investments in Play Revolution in North Wales, Advantiv in Merthyr and Pembroke Dock (with a £3.5m investment), and Bloemteknik, a Cardiff-based agri-tech company, which received £2.5m in December.
Sampson highlighted the significance of these deals, pointing to the quality and diversity of Welsh companies. He emphasised that the pipeline includes businesses from various high-growth sectors such as advanced manufacturing and deep-tech, reflecting the UK Government's priorities. He also noted Foresight's flexible approach, which allows for growth capital investments with succession planning for shareholders, as well as support for younger companies like Bloemteknik.
Since its launch in 2023, Bloemteknik has scaled rapidly and is rolling out pioneering technology. Sampson commented that few UK private equity firms have the same depth of experience and enthusiasm for investing across different deal stages.
Looking ahead, Sampson acknowledged a challenging environment with risk factors affecting valuations, but expressed confidence in Foresight's position, stating, "We are in great shape and have significant funds to invest in Welsh businesses. These recent deals have given us momentum and we have a strong pipeline for the rest of the year."
Foresight has made ten investments from the fund to date, though it declined to specify the remaining capital available for investment.
Bethan Bannister, senior investment manager for nations and regions investment funds at the British Business Bank, welcomed the strong start to 2026, noting the increasing number of high-quality businesses accessing finance. She said, "These recent investments highlight both the diversity of opportunities and the strength of the pipeline continuing to be built. Foresight's progress is a positive reflection of how the programme is gaining traction, and there is strong demand from Welsh businesses for flexible, growth-focused capital."
