Munro named BGF Scotland chief

INVESTMENT veteran Simon Munro was yesterday named as the regional director for the big-five banks’ Business Growth Fund (BGF) in Scotland.

Munro – whose career has included spells with finance houses RMD, Simmons & Co and Lime Rock – will lead a team looking to invest between £2 million and £10m in small businesses that turn over £5m to £100m a year.

In return, BGF will take a 10 per cent equity stake and a seat on the firm’s board.

The fund was born out of the “Project Merlin” agreement between the UK government and the big banks – designed to stimulate lending to small and medium-sized businesses.

The five major UK-based banks – Barclays, HSBC, Lloyds, Royal Bank of Scotland and Standard Chartered – have pumped a total of £2.5 billion into the fund, which is being co-ordinated by trade body the British Bankers’ Association.

Munro said: “With my background of investing in oil and gas, I am keen to quickly establish the fund as a supporter of the sector. My sense is there are many high-quality businesses in Scotland that have real potential but have fallen through the funding cracks.”

His appointment follows that of Duncan Macrae as investment director in August.

BGF chief executive Stephen Welton said: “Now that Simon is in place, we will be even more actively talking to local businesses and advisers about what we can offer.”