Anderson Strathern’s corporate investment team off to ‘record breaking’ start in 2023

Anderson Strathern’s corporate investment team off to ‘record breaking’ start in 2023

Law firm Anderson Strathern is reporting a ‘record breaking’ quarter for investment deals, with its corporate investment team completing an ‘exceptional’ number of deals between January and March.

The bumper period has seen Anderson Strathern’s clients investing 58.8% more in the first quarter of 2023, when compared to January-March 2022.

The number of deals completed has also rocketed, more than tripling compared to the first quarter of 2022, due to increased instructions from both existing and new clients.

Deals completed during the quarter include investment of around £1.35 million by Par Equity together with a co-investor into Glasgow-based green energy company, Heliex Power Ltd.

The firm’s corporate investment team, led by Euan Tripp and Max Scharbert, advises some of Scotland’s most active investors, from private equity funds to angel syndicates, high net worth individuals and investment arms of large corporate organisations.

The team had its best year to date in 2022, having been involved in over 25 corporate investment deals with an aggregate value of over £20 million.

Euan Tripp, partner at Anderson Strathern, said: “After a phenomenal 2022, we predicted that the healthy Scottish investment scene would continue in 2023, and these forecasts have become reality, with a record-breaking first quarter for the firm which has seen an exceptional number of deals. There is no doubt that the investment world has become more competitive – in respect of deals involving new companies – but there is a steady flow of follow-up finance into existing portfolio companies. We have also noted an increased interest from south of the border in Scottish companies.

“This is a great time to seek investment if you have an innovative idea with a strong business case to back it up; our message to entrepreneurs and young companies is – be bold, and ask for what you need.”

The team at Anderson Strathern is also predicting that ‘positive changes’ to the Seed Enterprise Investment Scheme (SEIS) that comes into force on 6 April 2023 will ensure the optimistic outlook continues further into 2023.

Since its inception in 2012, SEIS has allowed investors a 50% deduction of their investment amount against their income tax. The new changes mean:

  • companies can now raise up to £250,000 in SEIS (an increase from £150,000)
  • companies can raise SEIS within the first 3 years of trading (an increase from 2 years)
  • companies can have up to £350,000 in gross assets before becoming ineligible to raise SEIS (an increase from £200,000)

The final change doubles the maximum amount that an investor can invest in start-ups using SEIS in any tax year, from £100,000 to £200,000.

Max Scharbert, a senior director in Anderson Strathern’s corporate investment team commented: “These positive changes to the SEIS rules will enable new start-ups to raise additional funds to help them on their journey. We believe this could trigger increased interest in new companies; at least one of our clients has already started to raise an SEIS fund.

“This welcome move, along with a continued healthy pipeline of deals, means we’re looking forward to the rest of 2023 with continued optimism.”