PwC has been appointed by Cardiff Capital Region (CCR), a conglomerate of ten local authorities across South East Wales, to provide services in support of delivery of its Innovation Investment Capital (‘IIC’ or the ‘Fund’) fund. The programme encompasses advisory and strategic matters such as investment research and sourcing, deal execution (in an agency capacity), advising on capital calls and distributions, sourcing investors/capital commitments and performing other day-to-day activities supporting the running of the fund over an initial five-year period.
In addition, Capricorn Fund Managers (‘Capricorn’) has established the Fund’s General Partner, which working closely with PwC is responsible for managing the Fund and overall portfolio risk management.
The £50m IIC is being funded from the CCR City Deal, a £1.2 billion programme that over its lifetime is expected to deliver up to 25,000 new jobs and leverage an additional £4 billion of private sector investment across an area stretching from Bridgend to Monmouthshire, including the South Wales valleys.
The IIC will support job creation, upskilling, social inclusion and meeting wider environmental goals. Focusing on funding innovative and established businesses with equity investments of between £2 million and £7 million, both as primary funders and as co-investment opportunities, it will prioritise businesses in key growth areas including the creative industries, fintech, medtech, cybersecurity and compound semiconductor production.
PwC’s Cardiff office currently employs around 400 client-facing advisors, a figure that is forecast to rise significantly as PwC grows its overall South Wales practice, in particular investing in its Execution Managed Services propositions, which introduce specialist providers to take care of operationally intensive processes and change management programmes.
PwC, Capricorn and CCR have worked collaboratively to devise an investment strategy for the Fund ahead of its launch in November 2022 with an expectation that it will be open for applications immediately thereafter.
John-Paul Barker, Market Leader for PwC in Wales & the West, said:
“This is a landmark piece of work for PwC in Wales. Crucially, it’s aligned to our purpose as a firm – it enables us to contribute directly to the modernisation of the regional economy, the promotion of social inclusion and fairness, and to drive growth in areas that will support the transition to net zero.”
Rhys Thomas, Chief Operating Officer for Cardiff Capital Region City Deal, said:
“We are delighted to announce the appointment of PwC to assist with the set up and provision of on-going support for our new Innovation Investment Capital fund. PwC has a deep knowledge of the regional business community and shares our mutual commitment to objectives around inclusivity, social mobility, driving innovation in the economy, and widening access to capital. This makes PwC the ideal partner to fulfil the significant ambitions we have for the economic and social impact that this fund is capable of generating.”
