Advising innovative fund on its first deal in Scotland

Business Growth Fund plc (BGF), an initiative backed by five of the UK’s main banking groups, was established in 2011 to help provide investment for Britain’s fast-growing smaller and medium-sized companies.

As well as providing financial backing, BGF seeks a collaborative approach with the management teams of its investee companies, providing access to the expertise and guidance required to take their high potential businesses to the next level.

In March 2012, BGF completed its first deal in Scotland, subscribing for a combination of equity and loan notes in STATS (UK) Limited, an oil and gas pipeline services company based in Kintore, near Aberdeen. BGF's total investment was just over £7.8 million and, as part of the deal, a new and extended funding package was secured from Lloyds Banking Group.

In addition to being BGF's first investment in Scotland, it was also its first investment in a manufacturing business and its first in the oil and gas sector. As well as supporting BGF on the negotiation and completion of the investment documentation, Brodies conducted sector-specific legal due diligence, advising on the norms and particular risks associated with STATS operations and contractual relationships.