Marc Davey

This shift reflects a broader change in mindset, particularly among growth-focused Scottish businesses. Traditional lending can often come with rigid repayment schedules that may not always align with the pace of a business’s development. In contrast, selling a minority stake in your business can offer a more flexible, sustainable route and one that supports longer-term ambitions rather than short-term obligations.

A growing number of Scottish SMEs are recognising the real value of equity investment. It provides more than capital. It brings space to grow. Without the pressure of regular repayments, business leaders can focus on strategy, innovation, and investing in their team. This kind of freedom can make a tangible difference, especially during periods of expansion or transformation.

The value of equity isn’t just financial – it’s strategic. Equity investors are true partners, sharing in both the risks and the rewards. Alongside funding, they often bring relevant experience, a strong network, and a long-term perspective that supports steady, sustainable growth.

At UKSE, our equity investments are about far more than a financial return. Each deal is bespoke, built around the individual needs of the business, and grounded in over 50 years of experience supporting SME growth. We invest in businesses we believe in – and that belief goes beyond the balance sheet. Our approach is rooted in partnership. We work closely with leadership teams to unlock potential, offering not just capital, but strategic insight, and long-term support designed to help businesses thrive.

UKSE recently supported two ambitious Scottish firms with equity funding – private medical and aesthetic group, Elanic and architectural glass specialist, Indeglas. Both have leveraged investment to drive expansion, showcasing the strategic, long-term growth that equity enables, whether through scaling operations, acquiring premises, investing in equipment, or empowering leadership teams.

What makes equity funding truly effective is the relationship behind it. Businesses don’t just need capital – they need the right kind of capital. Support that understands the challenges and opportunities unique to Scotland’s economy and business landscape. That kind of investment can be transformative.

As Scotland continues to champion innovation and enterprise, demand for practical and strategic funding solutions is set to rise. For many, equity investment is no longer seen as a last resort or an alternative – it’s a smart, proactive choice for those looking to build something that lasts.

Marc Davey is regional executive, Scotland, at UKSE