Foresight announces first close of the Foresight Scotland Fund at more than £60m

• The Fund has been launched with support from British Business Investments and Strathclyde Pension Fund
• The Fund will support the growth of established smaller companies throughout Scotland
• This is Foresight’s second fund dedicated to Scottish SMEs and will support the growth of Foresight’s Scottish team
• The Fund is Foresight’s eleventh regional fund and will replicate the strategy successfully deployed in other regions across the UK

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Edinburgh 12 January 2023: Foresight Group (“Foresight”), a leading 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 £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 and Co-Head of Private Equity 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. 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.”

Ian Jamison, Investment Manager at Strathclyde Pension Fund, said: “We are pleased to have been able to support the launch of the Foresight Scotland Fund. The Fund is a great opportunity to help growth within small and medium businesses across Scotland, which in turn will create local jobs and attract further investment, supporting economic growth whilst generating strong returns for our pension fund members.”