1 / 9

JEREMIE: The Wales experience Presentation by Nick Moon Director of Strategy Communications Finance Wales plc Direct

Finance Wales. Established 2001Shares are owned by Welsh Government but company is commercially independent All funds are a mixture of public and private investment Amongst the leading VCLFs in Europe Invested over GBP 100m in Welsh SMEsSuccessful investment track record JEREMIE fund is the future .

kat
Download Presentation

JEREMIE: The Wales experience Presentation by Nick Moon Director of Strategy Communications Finance Wales plc Direct

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

    1. JEREMIE: The Wales experience Presentation by Nick Moon Director of Strategy & Communications Finance Wales plc Directorate-General for Regional Policy Open Days JEREMIE workshop Wednesday 8th October 2008

    2. Finance Wales Established 2001 Shares are owned by Welsh Government but company is commercially independent All funds are a mixture of public and private investment Amongst the leading VCLFs in Europe Invested over GBP 100m in Welsh SMEs Successful investment track record JEREMIE fund is the future EIF report analysed existing SME financial instruments available in Wales, and compared this to an assessment undertaken to evaluate supply and demand for finance for SMEs. Sought to identify market failures and make recommendations for how they can be addressed. EIF report analysed existing SME financial instruments available in Wales, and compared this to an assessment undertaken to evaluate supply and demand for finance for SMEs. Sought to identify market failures and make recommendations for how they can be addressed.

    3. JEREMIE & Wales Why JEREMIE? Began developing JEREMIE 18 months ago Finance Wales plc has led for Wales appointed Holding Fund early on by Welsh Managing Authority Now lead region in Europe Anticipated November launch of GBP150m fund Some critical success factors are outstanding EIF report analysed existing SME financial instruments available in Wales, and compared this to an assessment undertaken to evaluate supply and demand for finance for SMEs. Sought to identify market failures and make recommendations for how they can be addressed. EIF report analysed existing SME financial instruments available in Wales, and compared this to an assessment undertaken to evaluate supply and demand for finance for SMEs. Sought to identify market failures and make recommendations for how they can be addressed.

    4. Level of demand EIF Wales JEREMIE report GBP 150m for 2008 - 2013 Wales has approximately 175,000 VAT registered businesses 99% are SMEs Weaknesses of a regional economy Finance Wales has typically invested GBP 20m per annum EIF report analysed existing SME financial instruments available in Wales, and compared this to an assessment undertaken to evaluate supply and demand for finance for SMEs. Sought to identify market failures and make recommendations for how they can be addressed. EIF report analysed existing SME financial instruments available in Wales, and compared this to an assessment undertaken to evaluate supply and demand for finance for SMEs. Sought to identify market failures and make recommendations for how they can be addressed.

    5. JEREMIE Wales Total fund size to be up to GBP 150m Micro financing scheme: GBP 5m Loan financing scheme: GBP 55m Risk capital investment scheme: GBP 65m Technology transfer scheme: GBP 10m Co-investment scheme: GBP 15m

    6. Fund structure

    7. European Investment Bank Began talking to the EIB before the conclusion of the EIF report 75m loan to Finance Wales plc (to be finalised) on commercial terms Loan holds senior position over all grant funding EIB undertook a diligence review of: The proposed fund model / transaction / financials Ownership, organisational and operational structure of Finance Wales plc group Diligence review lasted 6 months in total Difficult product: competition process/delivery information requirements Difficult product: competition process/delivery information requirements

    8. Intermediary appointment Fund management of JEREMIE initiative subject to open tender process OJEU notification Process of appointment of fund managers concluded (EIB ratification required) Proposals were invited for 1 or more of the 5 lots (i.e. sub-funds) Desk based review, presentations/Q&A sessions, EIF due diligence report undertaken on preferred management

    9. Overall lessons learnt Importance of robust evidence to back up proposals Project parts must be run in parallel Partnership approach Patience!

    10. Thank you. Any questions? nick.moon@financewales.co.uk Director of Strategy & Communications Finance Wales plc (00 44) 2920 338168

More Related