McColl’s latest fund picks up £420m with US investors leading the way

Published on 03/02/2012 00:00

CLYDE Blowers Capital, the private equity vehicle set up by Jim McColl, has attracted more than £420 million from investors for its latest fund to back engineering businesses.

Strong interest – particularly from the US – saw the original funding target of £350m extended but it was still significantly oversubscribed at the final close.

The cash has come from a variety of institutional investors, including university endowments and pension funds. Nearly two-thirds came from the US, a much higher percentage than in previous fundraisings which reflects Clyde Blowers’ increased activity there in recent years.

McColl, chairman of Clyde Blowers Capital, said the success of the firm’s third fund, which will invest in the oil, gas, natural resources and renewable energy sectors, reflected the growing need for companies to access operational business expertise alongside financial backing.

“With the major changes that are taking place in the global economy, it is doubtful that the old model of funders supplying money without operating expertise will ever come back. This is the new world,” he said.

McColl said his team had “massive operational experience” across the engineering sector of the power industry including nuclear, oil and gas and metals and minerals. The business, which now has three funds, looks to invest in companies where it believes it can add significant value but also where there are opportunities to work with existing management.

“We understand the economic agenda and how the competition operates,” McColl said.

Headquartered in East Kilbride, Clyde Blowers Capital has already invested some of the latest fund in the £85m acquisition of Moventas, the Finnish maker of gears for wind turbines, which was announced in November.

Other companies invested in by Clyde funds include Huddersfield-based David Brown Gear Systems which earlier this week won a multi-million pound deal with Samsung Heavy Industries to supply gearbox systems for its next generation offshore wind turbine.

David Brown will establish a gearbox assembly plant to supply the facility which Samsung is creating at Methil, in Fife. McColl described the order as a “very exciting development” for Clyde Blowers and David Brown and said it had been secured on the back of a growing collaboration with Samsung.

More than 500 jobs may eventually be created by the South Korean giant when it establishes its first European offshore wind facility in Scotland.

The inward investment worth up to £100m was announced by First Minister Alex Salmond at the Scottish Offshore Wind and Supply Chain Conference in Aberdeen.

Other companies which Clyde Blowers Capital – managed by former Ernst & Young partner Keith Gibson – has invested in include Swiss-based Maag, Clyde Bergemann Power and logistics group InterBulk.