As an “adopted Aberdonian” Jock Gardiner and fellow Alba Equity founders John Duncan and Ian McPherson spent a good many years discussing the lack of a local angel investment group in the north-east of Scotland, and the impact that was having on the region’s economy.

Now entering its third year, the Alba network has grown to about 50 high net worth individuals who have put approximately £1.5 million into six different firms, with more deals on the immediate horizon. With engaging informality, Mr Gardiner says that so far it’s proved to be a “decent idea”.

“John and I go back at least 20 years,” explains the former Maven Capital partner. “John was in the Bank of Scotland, so had a banking background and is a qualified accountant as well.

“He and I had long talks about the missing piece in the angel jigsaw in Scotland in that there wasn’t an active angel group up in the north-east. So it is something we had thought about for a while and had always said once we get out of doing full-time jobs, it’s something we should look at doing.”

Raised in the Lake District till the age of 16, Mr Gardiner then spent a couple of years in Edinburgh before arriving in Aberdeen in 1983 to study agriculture. There he has stayed ever since as a subsequent certificate in accountancy studies put him on a path that led to the private equity team of what was then known as Aberdeen Asset Management (AAM), where he was promoted to investment director in 2000.

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“My connection to Aberdeen was a long-standing love of the football team, and I went to university up here because I could then go watch Aberdeen at Pittodrie every week,” he said. “It seems an interesting motivation, but it was certainly a very strong one for me.”

He was one of six founding partners that led the buy-out of AAM’s private equity business in 2009 to create Maven Capital Partners, which initially employed 22 people with some £140m in assets under management.

From his base in Aberdeen Mr Gardiner had responsibility for Maven’s energy deals throughout the UK, and led the north of Scotland investment team in more than 30 management buy-out deals. He served as a director on several boards of companies in the Maven portfolio and was a member of the group’s investment committee.

He stepped down as a partner in 2017 but has continued as a consultant with Maven, which was sold in May of last year to Mattioli Woods in a deal worth up to £100m. By that time, Maven employed nearly 100 people with £772m in assets under management.

Stepping back from his day-to-day responsibilities at Maven gave Mr Gardiner the opportunity to finally set up the angel investment network that he and his Alba co-founders had envisioned years before. The group made its first investment in February 2019, a seed funding round in support of a Strathclyde University cancer spin-out now known as Dxcover. Three of the six companies in the current portfolio are medical and healthcare business located in Scotland’s central belt, while the other three are energy-related business from the north-east.

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“We look at the potential for the business first and foremost – the management team qualities, what the business does, and its potential to grow – rather than specifically saying we are only going to do this or that,” Mr Gardiner explains.

Alba Equity will likely complete three or four further deals this year in a mix of new and follow-on investments.

“We are in the midst of hopefully soon concluding a new deal in an Edinburgh-based software business which again has got some interesting dynamics about it,” Mr Gardiner said, adding that Alba is also looking at a healthcare-related business in the Edinburgh area. With “a fair wind” those deals should conclude in the first quarter of this year.

Covid restrictions have not stifled the investment pipeline as online meetings filled the breach, and in some respects has proven superior to face-to-face funding pitches. Recording presentations gives the network’s investors an overview of opportunities even when they can’t make a specified meeting time, and will continue to feature in the future.

Mr Gardiner said the lifting of travel restrictions will be a boost for many businesses, but one thing firms won’t be able to escape is the UK’s tight labour market. This is especially troublesome for the high-growth businesses in which Alba invests.

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“There is a scarcity of talent across a whole range of disciplines, and by definition pricing of individuals will rise,” said Mr Gardiner, who also serves as chairman of Aberdeen's TMM Recruitment.

“My first degree was in agriculture and I remember back 1987 as part of our course cutting cauliflowers down in Perthshire for £2 an hour. Somebody told me last week that they were paying people over £30 an hour to do the same job now.”

But there is a positive side as well: “I always tend to be a glass half full person, so I see great opportunities for the workforce in general, and certainly for those who are prepared to take the risk of setting up their own businesses and use their skills. We are in an area and in times where those who are good at that will do very well.”

Q&A

What countries have you most enjoyed travelling to, for business or leisure, and why?

For work it’s the USA, particularly Houston, Texas. Before Covid a large contingent of the Aberdeen business community went every year to the Offshore Technology Conference held in Houston in early May, creating business relationships that have endured for a whole career.

In terms of leisure our last family holiday was in Austria, which was a great contrast between the wonderful Alps and historic cities. Next on the list is a cruise to Norway this summer, but before then I am looking forward to a trip to Rome for the Scotland rugby match.

When you were a child, what was your ideal job? Why did it appeal?

Playing centre forward for Manchester United, the club I supported as a youngster. It was my dream to follow in the footsteps of Denis Law, the only player to have two statues of himself at Old Trafford and now one in his birthplace of Aberdeen, which has been my home for the last four decades.

What was your biggest break in business?

Joining Aberdeen Asset Management in the mid 90s as the business was dynamic, entrepreneurial and great fun to work at. Having trained as an accountant, AAM gave me an opportunity to build a career in private equity and work alongside some brilliant local business leaders.

What was your worst moment in business?

Any time an investment fails is horrible – so many people are impacted including investors, staff, suppliers, customers and the business owners. Fortunately I have not experienced this situation too often, but as investors we don’t get all decisions right unfortunately.

Who do you most admire and why?

Sir Alex Ferguson (or plain Fergie back in the day) who managed both my favourite Scottish and English club sides, namely Aberdeen and Manchester United, as well as a wee stint with Scotland in the 1986 World Cup. I have been privileged to spend a bit of time in the great man’s company, he is a true football legend who never forgets his roots.

What book are you reading and what music are you listening to?

Lots! Current books on the go include “Soldiers” by Max Hastings and “Lifted Over the Turnstiles” by Steve Finan, in which I assisted the author by proof-reading. I await Peter May’s next novel with baited breath, his work is outstanding.

Musically, my current Spotify favourites include New Order, Joy Division and A Certain Ratio – Manchester influences abound – as well as Scottish tunes from Orange Juice, Blue Nile, Hipsway and The Shamen. Recent gigs I have attended or will attend soon include New Order, Madness, Deacon Blue, Simple Minds and Andre Rieu, and finally a special shout out for Leeds-based Skylights who are an up and coming band to watch.