Foresight Group has announced the launch of a new fund dedicated to investment in Scotland.

The first close, at more than £60m, was supported by cornerstone commitments from Strathclyde Pension Fund and British Business Investments, a wholly-owned commercial subsidiary of the British Business Bank.

This is Foresight’s eleventh regional fund, replicating the successful strategy already deployed in other regions of the UK. It is also Foresight’s second fund dedicated to Scotland, having launched the £32m Foresight Scottish Growth Fund with the support of the Scottish Government in 2019.

The Fund will target debt and equity investments of £1m to £5m in established SMEs with growth potential. It will be managed by Foresight’s collegiate Private Equity team, with growth of the existing team in Scotland.

The Fund will support the local Scottish economy and deliver a positive social impact across Scotland, creating high-quality, local jobs. Since 2016, Foresight’s regional funds have created thousands of jobs in regions throughout the UK.

The Fund will also enable companies to achieve their growth potential. Notably, during the summer of 2022, Foresight exited Edinburgh-based Codeplay, generating a 16x return for investors.

Foresight is one of the most active investors in small and medium-sized businesses in the UK and Ireland, providing flexible funding and partnering with companies across all sectors and deal stages. In 2022, Foresight made 94 investments into SMEs and delivered eight successful exits.

Matt Smith, Partner at Foresight Group, commented: “We are very pleased to be launching this Fund in partnership with British Business Investments and Strathclyde Pension Fund. We look forward to delivering a positive impact and working with exciting growth SMEs throughout Scotland to create value and jobs.

“The Fund reflects our commitment to the Scottish market, where we believe there is a funding gap for the provision of capital and expertise to smaller companies. We look forward to strengthening our ties with the local business community and further building our local team.”

Daniel Halliday, a Director based in Foresight’s Edinburgh office, commented: “We are delighted to be able to increase our commitment to the Scottish market.

Recommended

• Shetland Spaceport Partners with German Rocket Company
• Royal Mail Suffering ‘Severe Disruption’ Following ‘Cyber Incident’
• Filament STAC to Launch Scottish IoT Recruitment Platform

“We continue to see an excellent opportunity to invest in Scotland, supporting the vibrant SME community that has historically been underserved by professionally managed capital. We look forward to growing our local team, building on the good work since establishing our office in 2019.”

Judith Hartley, CEO at British Business Investments, said: “British Business Investments is committed to improving choice and diversity of funding options for UK small businesses seeking to grow. By investing in funds like Foresight’s Scotland Fund, we help smaller businesses in the UK’s nations and regions to access capital and unlock rapid growth. Our commitment to Foresight will support established Scottish businesses with growth potential.”

Get all the latest news from DIGIT direct to your inbox

Our newsletter covers the latest technology and IT news from Scotland and beyond, as well as in-depth features and exclusive interviews with leading figures and rising stars.

To subscribe, click here.