US private equity fund to pump £17m in Scotland

SCOTLAND'S energy sector stands to benefit from a £17 million investment after an American private equity firm revealed that it was still looking to pump funds into the industry.

Simmons Parallel Energy Fund was launched in 2008 to make minority co-investments in Europe-based oilfield services, technology, development and production businesses working in the eastern hemisphere.

Scottish firms that have benefited from the 16m already invested by the fund include energy consultancy Xodus Group and oil well engineering firm Red Spider Technology. The fund typically invests between 2 million and 5m.

Frank Summers, head of Simmons Parallel Energy Fund, said: "We continue to focus on management buy-out and buy-ins and growth capital opportunities where we can co-invest with other private equity funds and industry investors.

"There are many owner managers of companies in the energy sector looking for capital to either grow organically or through acquisition."