Investment Group to Put Money Into Scottish Oil and Gas Firms

Two of Scotland’s leading business angels are spearheading a new investment group aimed at unlocking the potential of existing companies in Scotland’s oil and gas sector, enabling them to maximise their value and move on to a higher level.

London and Scottish Investment Partners (LSIP) will target established family firms and other SMEs which have been operating for a minimum of three years and are in need of external support to generate further growth, create jobs and fully realise their value. LSIP membership is comprised of a network of 20 experienced and sophisticated investors including its Chairman Scott Carnegie of Discovery Investment Fund and respected Scottish business figure Nelson Gray. (See biographical details below)

The group will consider applications from firms fitting their criteria and aims to undertake an average of four to six investments each year. They will then provide funds and expertise in exchange for an equity position to enable them to deliver the required restructuring or transformation of the business.

LSIP has set aside an annual fund of up to £3m and will, in most cases, target investments of between £300,000 and £500,000. In addition to oil and gas businesses, the group will also target technology, life sciences, food and drink, and manufacturing sector firms with real growth prospects, including ones whose owners are seeking to crystallise the inherent value in their companies through sale or succession.

LSIP Chairman Scott Carnegie said: “The core aim of London and Scottish Investment Partners is to create more entrepreneurial wealth by helping SMEs in Scotland flourish and move on to the next level, whether that is enhancing their share of a local market or globalising their business. We believe we offer a fresh and unique approach as we are investing in established businesses rather than start ups, which are already serviced through several other investment channels.”

“There are numerous owner-operated Scottish SMEs within the oil and gas sector with great growth prospects and significant IP value which, for a number of reasons, are not performing to their full potential. There are also a number of companies with external backers who are suffering from ‘investor fatigue,’ uncertain of a clear forward route for the business. Through LSIP we can offer funding and, most importantly, the expertise and experience of our members and management support teams to take a business to the next level.

LSIP Vice Chairman Nelson Gray said: “Our investment decisions will be driven by restructuring opportunities within established businesses which meet our criteria: is there real growth potential, is there great IP and other value which we can help release?”

“We know there are a huge number of Scottish companies, some of which have been around for many years, which are held back from realising their full potential for a number of factors. LSIP wants to help these businesses by working closely with them to release the entrepreneurial spirit of the individuals and management teams who run them. We believe this approach will encourage growth, create new jobs and release further wealth into the Scottish economy.”