AN investment research specialist has made plans to scale up its operations in Scotland significantly after winning support from a private equity firm.

Substantive Research has been awarded £800,000 under a programme launched to help small and medium sized enterprises to boost growth in Scotland.

The fund is managed by the Foresight investment business, which said Substantive Research had carved out a niche in a growing market.

Led by Mike Carrodus, Substantive Research provides tools that allow asset managers to track the content of research reports produced by analysts and to keep tabs on associated costs.

Now is the time for Scotland to justify its lofty reputation on the investment stage

The tools can be used to help investors find the most relevant content and to maximise the return they generate on their investment in research.

Demand for such services has risen since the European Union’s Mifid II regulatory reforms were implemented in 2018. These require investment firms to pay separately for research provided by investment banks and the like and to detail any costs that they pass on to clients.

Costs could be ‘bundled’ with transaction fees previously.

“Now more than ever, high quality research needs to be found and rewarded appropriately, whilst asset managers focus on getting maximum value from their research budgets,” said Mr Carrodus.

London-based Substantive recently opened an office in Edinburgh, which is one of the most important asset management centres in Europe.

Edinburgh asset manager recruits big hitters

The city is also home to a growing contingent of financial technology firms.

Substantive expects to draw on the £800,000 support provided by the £20 million Foresight Scottish Growth Fund to help it increase employee numbers in Edinburgh from two to around six.

The growth fund draws on financing provided by the Scottish Government and the European Union.

Other recipients of Scottish Growth Fund support include Lanarkshire-based thin film technology specialist Novosound.


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