Four-year-old Subocean, which in recent years has expanded from the oil and gas sector to become one of the largest providers of services to the renewable energy sector in the UK, has raised a total of £42m from investors as it looks at expansion overseas.

LDC’s £17m investment, its first since opening offices north of the border last year, will give it a 34% stake. Management, led by founders John Sinclair, Mike Daniel and Bill Docherty, own the rest of the company. The deal values Subocean at more than £75m.

On top of LDC’s contribution, HSBC is providing Subocean with £25m in bank debt.

Subocean will use the new cash to double the size of the business in two years, with the goal of achieving a turnover of £300m by 2014.

Subocean managing director and shareholder John Sinclair said: “LDC’s investment demonstrates fantastic confidence in the business and its potential, particularly within marine renewables, where we are now working on over 50% of offshore wind farm projects currently under construction in UK waters.

“With an order book standing at £150m, we have strong foundations for our growth, which the new equity will help us pursue.

“To date, Subocean has only been addressing the UK market requirements, but we see an even bigger opportunity to capture a significant share of business outside the UK from 2011, when other European governments start progressing their own renewable targets for 2020.”

Among Suboceans’s recent contract wins was a £27m deal with Thanet Offshore Wind Development to install power cables under the seabed off the Kent coast, and a £7m contract from utility E.ON UK to install cables for use on the Robin Rigg wind farm development in the Solway Firth.

Sinclair said the new funding deal will also allow the company to expand its existing offering to the UK offshore wind and oil and gas sector and invest in cutting-edge equipment.

Subocean employs 90 people with a turnover of £70m. More than three quarters of this is now from the fast-growing renewable energy sector. It expects to increase its workforce by 50% in the next two years.

As a result of the deal, James Rodger, LDC’s director in Scotland, and colleague Steve Carle will take seats on the Subocean board. Rodger said: “This is LDC’s first investment in Scotland

since opening offices in Edinburgh and Aberdeen last year, and is the 15th investment nationally in 2009.

“The private equity market this year has generally been quiet throughout the UK and particularly in Scotland.

“However, LDC’s philosophy is to support first-class management teams and to seek investment opportunities throughout the economic cycle.”

LDC opened its Scottish offices just as the private equity boom was coming to an end. It also has offices across England and an outpost in Hong Kong.

Even before it opened up north of the border, it had backed prominent Scottish businesses such as Stirling-based insulation company Superglass.

Among its recent deals is the backing of the British Manor Grand Prix motor racing team, now rebranded Virgin Racing, that plans to compete in Formula One next year.

It has also been linked to an attempted management buy-out at McKinnon & Clarke, the energy consultancy.

LDC operates in the mid-market space backing UK companies that are seeking between £2m and £100m of equity.

Few private equity deals have been undertaken since the credit crunch hit.