In full: the main Scottish deals and advisers involved in Q2

Scotland’s deal market holds firm as energy and AI dominate Q2

Scotland’s deal market split sharply by sector in the second quarter, with energy and artificial intelligence absorbing the bulk of investment capital while the rest of the market traded at lower, mostly undisclosed values.

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The quarter produced 83 transactions worth more than £471m, according to data compiled by Experian Market IQ and adviser submissions for Scotsman Insider’s quarterly deals analysis.

But the headline figure conceals two distinct markets, a high-volume run of trade and management buyouts, and a smaller, capital-intensive cycle concentrated almost entirely in energy and AI.

Dominant deals were Blue Energy’s £295m raise for its modular nuclear business, Wordsmith’s £52m Series B, backed by Highland Europe and Index Ventures, and Drax’s £36m purchase of demand-flexibility specialist Flexitricity reinforced the pattern.

“Well-positioned businesses continue to attract significant interest from private equity, trade buyers and consolidators, particularly where there is strong recurring income, sector specialism, and a growth story,” said Allan Dowie, partner at N4 Partners.

Elsewhere, 57 per cent of deals were recorded on an undisclosed or existing basis, a sign that capital outside energy and AI is moving at lower values and with far less visibility.

Professional services led activity by sector volume on 20 per cent, ahead of manufacturing on 14 per cent, with financial services and energy & utilities tied on 12 per cent.

Five deals remain pending, including the Capricorn Energy takeover, Tomoro’s acquisition by OpenAI and the Muir Mhòr offshore wind farm sale, both expected to complete in Q3.