Scottish Growth Fund ploughs £800,000 into financial research firm

A data firm which helps asset managers to make the most of their research budgets has secured a £800,000 investment from the Foresight Scottish Growth Fund.  

Substantive Research has been backed by the investment from the £20 million fund which has been set up with cash from the Scottish Government and the European Regional Development Fund.

Substantive Research, which recently opened an office in Edinburgh, was founded in 2015 by Mike Carrodus, who has over 25 years’ experience working in financial data and research and used to be publisher of Euromoney Magazine.

It has worked with over 60 of the world’s leading asset managers, providing benchmarking data, details on analyst moves and tracking new providers.

The investment will help the company accelerate its growth by investing in the team, particularly in its Scottish office, as well as expansion into the USA and Asia. 

Carrodus said: “Now more than ever, high quality research needs to be found and rewarded appropriately, whilst asset managers focus on getting maximum value from their research budgets.

“This investment and partnership with Foresight allows us to build out the team in the UK, US and Asia, whilst deepening and broadening the coverage and valuation databases that drive the insights our clients find so valuable.”

Dan Halliday, senior investment manager at Foresight which has now made four investments through the Scottish fund in the past three months, said: “Substantive Research has carved out a real niche in this growing market and has the opportunity to consolidate its position and reputation as the emerging market leader in financial research analysis.”

Advisers on the deal included HNH Partners, Anderson Strathern, Confidas People, Rafalie Corporate Finance and Gannons Commercial Law.

The Foresight Scottish Growth Fund offers equity investments of up to £2m to growing small and medium-sized enterprises (SMEs) in Scotland.

Other deals have included a £2m investment into ultrasound technology company Novosound, a spin-out from the University of the West of Scotland.