Long-term patient investor BGF has predicted a strong outlook for businesses in Scotland.
Its Scottish team has invested close to £33m across 10 Scottish growth businesses in the past six months, including its second investment in an Initial Public Offering (IPO) in 12 months.
BGF makes initial investments between £1m to £15m for a minority equity stake, backing ambitious teams across a range of sectors.
In June, BGF invested £7m in The Artisanal Spirits Company, owner of the Scotch Malt Whisky Society, as part of its admission to the Alternative Investment Market (AIM). The IPO achieved a valuation of around £78m.
The deal follows BGF’s investment in Calnex Solutions, as part of the Linlithgow-based telecom test provider’s IPO in September 2020.
In central Scotland, its investments include: £4m into social care provider CSN Care Group; £5.2m in video recruitment software firm Odro; £5m into Fife-headquartered natural pet food producer Bella & Duke; and part of a $4m investment round in Edinburgh-based hybrid workspace platform Desana.
Many of BGF’s existing portfolio companies in central Scotland also experienced growth in the first half of 2021.
Stirling-based paint and accessory retailer The Paint Shed opened its 18th store in Aberdeen this May following a £2.7m investment from BGF.
BGF expects to see continued demand for business funding in the latter half of 2021 as management teams assess their options.
Patrick Graham, head of central Scotland and Northern Ireland at BGF, explained: “Although there remains a significant level of uncertainty in the market, we are very optimistic about the outlook for growth businesses, with a high level of confidence in the management teams running the great companies in our portfolio.”
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