Scottish European Growth Co-Investment Programme

Your company now has easier access larger investments, skills, networks, supply chain and industry expertise thanks to a new partnership between Scottish Enterprise and the European Investment Fund.

Access larger investments, networks and skills

The Scottish Government has made funding available to Scottish Enterprise under the Scottish Growth Scheme. This has allowed us to enter into an innovative partnership with the European Investment Fund to create the Scottish-European Growth Co-Investment Programme.

The Scottish-European Growth Co-Investment Programme is suitable for businesses in all areas of Scotland looking for equity investment to meet their growth ambitions.

Commercially-viable businesses that have an established operating base in Scotland are eligible to apply for this fund.

Under this partnership, eligible companies will have access to £50 million from Scottish Enterprise and £50 million from the European Investment Fund, which will leverage at least £100 million from private sector fund managers.

The fund aims to increase the availability of later stage equity investment to Scottish SMEs.

Through this programme, we can invest a maximum of £5 million into any one company. However, we cannot invest more than the European Investment Fund or more than 50% of the fund manager's investment.

Benefits to your business

Securing the type of investment available through this initiative can bring a number of benefits, including access to:

  • Larger investments - with the ability to secure follow-on investment as your business grows
  • Networks - including customers, supply chain and industry expertise
  • Skills - additional management or board skills

Am I eligible?

To be eligible for the Scottish-European Growth Co-Investment Programme your company must secure an investment commitment from a European Investment Fund accredited fund manager.

Your company must also:

  • Be a commercially-viable business, with growth and international ambition
  • Have an established operating base in Scotland
  • Meet the European Union definition of a SME - This means having fewer than 250 employees, an annual turnover of no more than €50 million, and/or annual balance sheet Net Asset Value below €43 million

The fund managers will confirm your eligibility as part of your company appraisal.

What can investment be used for?

The investment can be used:

  • As growth capital
  • As acquisition finance
  • To partially fund a management buy-out or a management buy-in
  • To fund an exit of existing shareholders - in each case 75% or more of the total funding round would be used for growth (i.e. a capital increase and not refinancing)

The investment cannot be used to directly fund activity in the following sectors:

  • Distilled alcohol (such as whisky)
  • Real estate/property development
  • Banking and insurance
  • Gambling
  • Bookmakers
  • Tobacco
  • Adult entertainment
  • Sub-prime financing
  • Religious or political movements
  • Movements, which have an adverse impact on animal or human rights

How we can help

We can help you find out if equity investment is an appropriate source of finance for your company. This will include working with the Scottish Investment Bank to identify appropriate fund manager(s) for you to approach.

We will also help you prepare your investment proposition and 'pitch'. Talk to our financial readiness experts

The fund manager will carry out due diligence and assessment of your investment proposition.

Scottish Enterprise and the European Investment Fund will not be involved in any aspect of this assessment process.

All funding will be fully commercial.

The fund manager will make all decisions on funding and will be responsible for managing the whole investment amount, including the Scottish Enterprise and the European Investment Fund's commitment.

How to apply

Are you a company?

We can help you find out if equity investment is an appropriate source of finance for your company and circumstances.

We can also help you prepare your investment proposition and identify appropriate accredited European Investment Fund fund manager(s).

Got a question? Contact us

Are you an investor?

If you're an European Investment Fund accredited fund manager, find full details of the Scottish European Growth Co-investment Fund on the European Investment Fund website

Guidance on becoming an accredited fund manager is on the European Investment Fund website

Contact our team to find out more

We're on hand to answer your questions and explain the support the Scottish Investment Bank can offer to help your business succeed.