Foresight Group, a listed regional private equity and infrastructure investment manager, has announced the launch of a new fund dedicated to investment in Scotland.
The first close, at more than £60 million, 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 11th 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 £1-5m 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.
During the summer of 2022, Foresight exited Edinburgh-based Codeplay, generating a 16x return for investors. Last year it made 94 investments into SMEs and delivered eight successful exits.
“We look forward to delivering a positive impact and working with exciting growth SMEs throughout Scotland to create value and jobs,” said Matt Smith, partner. “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.”
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.”