By Ian McConnell

Foresight Fund Managers, appointed by the Scottish Government to run a £20 million equity fund aimed at small and medium-sized growth companies, has opened an office and established an investment team in Edinburgh.

London-based Foresight said yesterday that it had formed the local investment team in the new George Street office “to support the deployment of the fund”.

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Dan Halliday has joined Foresight as a senior investment manager from Rcapital. Foresight said Mr Halliday had, in his previous role, provided “strategic, financial and operational support to portfolio companies, predominantly in Scotland”.

It added: “Dan understands the challenges confronting ambitious entrepreneurs.”

Investment manager Graeme McKinstry will work alongside Mr Halliday. Mr McKinstry worked previously in a similar role at Par Equity, focusing on early-stage venture capital investments.

The Foresight Scottish Growth Fund will offer equity investments of up to £2m in funding rounds of up to £10m to growing small and medium-sized enterprises throughout Scotland operating in a range of sectors. Foresight, which has £4 billion of assets under management, said the Scottish Growth Fund would often co-invest with “like-minded” investment managers and other funds that it runs.

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It noted Mr Halliday and Mr McKinstry would be supported by Foresight director Chris Wardle, and 23 other investment professionals across its UK offices.

The new £20m fund is part of the Scottish Government’s broader £500m Scottish Growth Scheme to provide financial support for businesses north of the Border.

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The Scottish Growth Fund, which will be invested over the next four years, is aimed at supporting economic growth and job creation north of the Border, also attracting additional private sector investment. It is financed by the Scottish Government and the European Regional Development Fund from the 2014 to 2020 European Structural Funds Programme in Scotland.