BGF eyes ‘positive’ 2026 pipeline after significant exits and successful new deal
“The team has continued to deliver positive results against a difficult operating background for private equity” – Richard Pugh, BGF
BGF’s Scottish team today hailed a successful 2025, with strong exits setting up a “positive 2026 pipeline”.
In November, BGF - formerly the Business Growth Fund - completed a £15 million investment in Cruden, the Scottish housebuilding group. Drawing on BGF’s “Talent Network”, John Cassie, former regional chair of housebuilding giant Persimmon, joined the Cruden board as non-executive chairman.
BGF said its funding would accelerate Cruden’s development programme, bringing forward major sites from its extensive landbank and unlocking new projects that will deliver much-needed housing and support hundreds of jobs across Scottish supply chains.
During 2025, there were a number of exits for BGF, including from catering business Entier, delivering a 2.6-times money multiple return, and from Optima Partners, securing a 4.6-times return. As part of that Optima transaction, BGF reinvested in the business and said it will continue to support the management team as a minority investor.
The investment outfit also continued to support its portfolio companies throughout 2025, by helping with the appointment of key people, facilitating acquisition activity and enabling the development of new technologies, in addition to providing growth funding.
Highlights from the year included Bella & Duke, the pet nutrition company, which expanded internationally into the Netherlands and Belgium and grew its revenue by more than 20 per cent year-on-year. Edinburgh-based Strathberry continued to scale rapidly in the global luxury goods market, now operating in 100 countries and with 80 per cent of sales outside the UK.
BGF’s Scottish team is now said to be working on several pipeline deals to build on its pledge of £200m to Scottish businesses over the next five years, as part of a £3 billion UK-wide commitment to support high-potential companies over the next five years.
Supporting female entrepreneurs was also a key focus throughout the year, with BGF joining the Pathways Forward initiative - launched by Ana Stewart, the Scottish government’s chief entrepreneur - to champion female entrepreneurship.
BGF was set up in 2011 and has invested in excess of £4bn in more than 600 companies. It invests in growing businesses in the UK and Ireland through its network of 15 offices.
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Richard Pugh, investor at BGF, said: “The team has continued to deliver positive results against a difficult operating background for private equity this year, and I want to thank all the management teams we work with for their hard-work, optimism and resilience. We’ve continued to support our portfolio of Scottish businesses, working with ambitious management teams who find new opportunities to grow their businesses.
“Our strategic investment of £15m in Cruden comes at a time of urgent need for more homes in the Central Belt, supporting the company’s healthy development pipeline and its ongoing management transition.
“The three investments we exited spanned three to eight-year hold periods, showing the benefit of our ability to invest for the long-term,” he added.
“There’s a lot to be excited about as we move forward into 2026 and we will continue to apply our patient capital approach as we identify, back and advise exceptional Scottish businesses to reach their growth potential.”
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