BGF Scotland boss on the art of patient business investment

Backed by five of the UK’s banking groups, BGF was set up in 2011 to provide patient capital to small and medium-sized businesses across Britain. We are now a certified B Corp. 

With a commitment to contributing to the economic resilience of the country, we aim to help companies scale the right way: through shared values of leading well, growing sustainably, taking thoughtful steps towards growth, keeping broad minds, and going further together. 

Why did you decide to join BGF? What were you doing previously? 

BGF was formed following the financial crisis to help stimulate growth in the economy by backing UK SMEs. At the time I was working at Sigma Capital Group investing in tech and clean tech businesses across the UK and Europe.

I loved my time at Sigma but saw first-hand the challenges businesses were having in scaling due to the lack of capital investing across UK regional markets. Therefore, I bought into the BGF plan. I believed SMEs and founders in regions across the UK needed something like it to provide support, long-term capital, and fundamentally confidence to pursue their growth plans. 

How many UK companies have been backed by BGF to date, and how many of those are in Scotland? 

BGF has invested over £400 million in more than 50 companies across Scotland since 2011. Altogether over the same period, we have invested £4bn in over 600 British businesses, which makes us the most active investor in the UK.

What has been your biggest investment in Scotland to date? 

Our biggest investment remains our first in Scotland. We invested £16m into the Aberdeen-based Stats Group, a market leader in the supply of pressurised pipeline isolation, hot tapping and plugging services to the global energy industry. We successfully exited the business in 2023 after a 12-year hold period, demonstrating the long-term approach BGF can take to get the right outcome for all stakeholders.

What inspires BGF to invest in a particular business?

The BGF Scotland team focuses on backing the people behind the numbers and we pride ourselves on building strong relationships with management teams. We are sector agnostic, usually finding success follows clear and ambitious growth plans, alongside entrepreneurs who believe in what they are doing and can bring others with them along the journey. In many cases across Scotland, the right investment and external advice can reinvigorate a founder and management teams’ sense of what can be achieved.   

What are the up-and-coming sectors to watch out for in Scotland?

We see innovation and opportunity almost across the board, but some of the brightest lights in Scotland can be found in the AI/data, life science and energy sectors. This sits alongside Scotland’s traditional strengths in areas like finance, food and drink, and professional services. That being said, our ability to reach into every corner of the country means we are consistently having conversations with really promising businesses in what might be considered more established or traditional sectors. 

What do you least enjoy about your job?

I have never been one for administration where there isn’t a clear rationale for it. Over the years I have found that the level of external "red tape" to getting deals done has gradually increased. This can lead to delays and inefficiencies, and can sometimes prevent deals happening. This can test my patience at times.

What is the most valuable lesson you have learned in your career?

There have been lots of lessons over the years, but there are two that stick out. 

The first is to surround yourself with people you enjoy spending time with both personally and professionally. We spend an incredibly large proportion of our lives working and it’s so much more enjoyable working with people you can have fun with along the way.

The second is that if your gut is telling you to do something, then back yourself.

Where do you find yourself most at ease? 

Inside the work environment it would be chatting to founders or management teams about their business and personal aspirations over a nice informal lunch. Hearing their stories, and ultimately playing a small part in them, is one of the biggest privileges of my job. 

Outside of work I should probably say spending time with my family which I obviously love to do. However, I do particularly enjoy an early morning run with my dog, Arlo.

If you weren’t in your current role, what job would you most fancy? 

I would still want to be involved in working with founders and management teams. It would be fun to be a non-exec across a small number of exciting businesses where I could help make a tangible difference.

What phrase or quotation has inspired you the most? 

"Onwards and upwards it shall be."  One of our CEOs uses this whether in positive or challenging scenarios and I think it encapsulates the founder mindset perfectly.

What is the best book you have ever read? Why is it the best? 

The best book I’ve read is Shoedog - the story of Nike. It encapsulates so many of the aspects of founding and successfully growing a business - the optimism, knockbacks, growing pains, personal highs and lows. It really is an eye opener to the sheer effort it takes to build a successful business. It’s something our portfolio are living and breathing daily. 

What has been your most challenging moment in life or business? 

I have been very fortunate in business (so far) as the businesses and people I have invested in over the years have, in the majority, done very well. Whether that is down to skill or luck is still to be determined. My most challenging moment was when we had serious illness in the family and balancing that with the demands of work is never easy. 

What do you now know that you wish you had known when starting out in your career? 

I always struggled a bit with imposter syndrome during my early career. I think this was a mix of coming from Northern Ireland where I think people have a healthy level of humility and also not speaking up enough when I needed help or input. Over the years I have managed to shake the imposter syndrome off but more confidence in my abilities and recognising that it’s not a sign of weakness to seek out support and advice when you need it would have enabled me to do so from the start of my career.