Mike Owen’s viewpoint on… why Finance Wales is doing more investments

 

05/03/10

 

Mike Owen, new investments manager

We’ve talked a lot in the past year about increasing investment levels at Finance Wales. We’ve just had a fantastic quarter and our investment performance for 2009 - 10 currently stands at £29 million.

 

One thing I’ve noticed in my 8 years with the company is an increase in our average investment size. In 2002, we were typically investing £40,000 in a single round. Our current average deal size has more than trebled to £130,000.

 

I thought it would be a good idea to share with you why we’re investing larger amounts in each deal and to think about why Finance Wales is doing more business.

 

Supply and demand

 

There’s no avoiding the fact that, in the current economic climate, other investors have a reduced appetite for the type of investments we specialise in. Banks have largely gone “back to basics” and are focusing on fully secured investments.

 

But the demand for part-secured and unsecured development capital deals hasn’t gone away. These types of investments are what Finance Wales is good at and our £150 million fund means we can continue doing more of them.

 

Reputation

 

If businesses and their advisors didn’t trust Finance Wales, we couldn’t do business.

 

Advisors recognise our track record is strong, so they’re bringing us larger investment opportunities. I think the reason for this is our people - Finance Wales’ greatest asset.

 

Our deal-doers are highly experienced in a wide range of investments, from small debt deals to multi-million pound equity investments. Our combined investment experience is close to 200 years and goodness knows what our combined age is!

 

Because we’re so prominent on the investment scene in Wales, we’re able to develop lasting, profitable relationships with the businesses we invest in and the advisors who refer them to us.

 

Up close and personal

 

We’re keen to get deals done, so we’ve streamlined the way we work to make better, quicker decisions.

 

Our people are closer to their customers than ever before. We understand businesses’ investment needs, so we’re able to help structure the right deals.

 

If you think your client can join the ranks of businesses growing because of Finance Wales’ investment, contact me.