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 strategy already deployed in other regions of the UK.
It is also the private equity and infrastructure investment manager'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 small to medium-sized enterprises (SMEs) with growth potential. It will be managed by Foresight’s private equity team, with new additions being made to the existing team in Scotland.
The fund aims to support the Scottish economy, creating local jobs. Since 2016, Foresight’s regional funds have created thousands of jobs in regions throughout the UK.
It should also enable companies to achieve their growth potential. Notably, last summer, Foresight exited Edinburgh-based Codeplay, generating a 16x return for investors.
Daniel Halliday, a director based in Foresight’s Edinburgh office, commented: “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.”
Ian Jamison, investment manager at the Strathclyde Pension Fund, said: “This 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.”
Foresight was founded in 1984 and has long had a focus on sustainability-led strategies, managing more than 350 infrastructure assets with a focus on solar and onshore wind assets, bioenergy and waste, as well as social projects and sustainable forestry assets.
The group operates across seven countries in Europe and Australia with assets under management of £12.5bn.
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