The two Welsh firms the British Business Bank has an equity interest in

UK taxpayers have equity stakes in two Welsh companies. The British Business Bank has published a list of 67 additional firms in which the Future Fund holds an equity interest, taking total equity holdings to 591 as of the end of June 2023.

The now fully investment £1.14bn fund, from the Treasury and administered by its economic regeneration bank, the British Business Bank, was launched during the pandemic to support tech firms to scale-up. The fund has seen the taxpayer taking small minority ownership positions in firms as they opt to convert original debt into equity.

Among the new additions are Transcend Packaging, a sustainable packaging company in Ystrad Mynach which manufactures products for big names like Ribena, KFC, Starbucks, and McDonald’s. Last year, the firm secured a multi-million-pound funding boost from alternative lender Growth Lending to expand internationally.

The other company which the British Business Bank has an equity interest in through the Future Fund is Cardiff-based Licentia Group, which provides IP licensing and technology services. The Future Fund has previously invested in Welsh firms such as Delio, LGN Innovations, Momentum Bioscience, and Human Food and Hydro Industries.

Read more: Publicly-owned energy company launched for Wales

Launched on 20 May 2020, and open for applications until 31 January 2021, the Future Fund issued 1,190 companies with convertible loans. Third-party investors were required to at least match the Future Fund’s investment.

The rate of conversions in Q1 2023/4 increased compared to the previous quarter, with 67 new additions. Similarly, the number of insolvencies continued to grow in Q1, with 18 new insolvencies added. This comparative increase in corporate activity is in part due to outstanding Future Fund loans nearing their three year maturity date as well as wider economic conditions.

Ken Cooper, managing director, venture solutions, British Business Bank said: “The Future Fund was created to ensure a flow of capital, at the height of the pandemic, to companies that would otherwise have been unable to access government support schemes, while ensuring long-term value for the UK taxpayer. The Future Fund is now entering the maturity phase, which signals three years since the first loans were executed.

“The comparative increase in activity this quarter is in part due to outstanding loans nearing their maturity, as we contact companies with outstanding loans in advance to set out the options available to them.”