Growth capital investor BGF has reported a strong year of activity in Scotland, with new investments, successful exits and continued support for portfolio companies despite a challenging private equity environment.
BGF’s Scotland team said 2025 included one significant new deal, follow-on funding to support portfolio growth and three exits, including one transaction where BGF reinvested as a minority investor.
BGF has pledged £200m to Scottish businesses over the next five years as part of its wider £3bn UK-wide investment commitment.
During the year, BGF completed a £15m investment in Cruden, one of Scotland’s established housebuilders.
The funding is expected to accelerate development across Cruden’s landbank, supporting housing and jobs across Scottish supply chains.
As part of the investment, John Cassie, former regional chair of Persimmon, joined Cruden’s board as non-executive chair.
BGF also achieved three exits during 2025.
These included the sale of its stake in Entier, Scotland’s largest independent catering company, delivering a 2.6 times money multiple return, and an exit from Optima Partners, generating a 4.6 times return. BGF reinvested in Optima as part of the transaction and continues to back the management team as a minority shareholder.
Across the wider portfolio, BGF supported companies through senior hires, mergers and acquisitions, technology development and growth funding.
Highlights included Bella+Duke expanding into the Netherlands and Belgium with revenue growth of more than 20 per cent year-on-year, Edinburgh-based Strathberry scaling international sales to more than 100 countries, and Dundee-based Waracle acquiring Bulgarian software consultancy HackSoft. Window Supply Company also expanded with new branches in England and launched a proprietary digital platform.
Supporting female entrepreneurship remained a focus, with BGF joining the Pathways Forward initiative to champion women-led businesses in Scotland.
Richard Pugh, investor at BGF, said the results reflected a long-term investment approach.
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“The team has continued to deliver positive results against a difficult operating background for private equity this year. Our £15m investment in Cruden comes at a time of urgent need for new homes, while our exits demonstrate the benefit of patient capital across three to eight-year hold periods,” he said.
Looking ahead, BGF said it is actively working on new pipeline opportunities for 2026, supported by the appointment of Rory McPherson, former head of M&A in Scotland at BDO, who joined the Edinburgh team during the year.
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