SEP to hire big wheels and increase its momentum

Scottish Equity Partners (SEP), which recently added former Scottish enterprise minister Wendy Alexander to its advisory board, said it intends to appoint “several new executives” in the next 12 months.

In an update, the Glasgow-based venture capital company said that progress across its portfolio of 30 companies had been encouraging, despite challenging economic conditions.

SEP’s companies are worth about £500 million and include Scottish firms such as Skyscanner, the fast-growing flight search company, data analytics company Sumerian, and Daysoft, the online contact lens company. About 30 per cent of SEP’s portfolio is based in Scotland.

In the last financial year it raised £200m for its latest primary investment vehicle, SEP IV, and launched a £95m “cleantech” fund.

Funds from SEP IV are invested in British technology companies. It attracted strong support from financial institutions in the face of what the group described as one of the toughest climates in recent times for private
equity fundraisings.

Managing partner Calum Paterson said: “Although we have had another very solid year, these are extremely difficult times for the vast majority of businesses, given the very evident lack of momentum in the economy.

“That said, we are obviously pleased our portfolio companies have continued to do well, which is testament to the efforts of the entrepreneurs we have backed, and their teams.”

He said the company aimed to be to be a “supportive, hands-on investor” and to add as much value as it could.

The group has established the Energy and Environmental Technologies Fund, working in partnership with energy firm SSE. The fund is buying a portfolio of assets from the FTSE 100 utilities company.