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US private equity firm rescues Scottish family firm

Category: Scotland Business News — Mark on December 28, 2011

The UK’s biggest private home developer, Miller Group, has secured a £160m ($249m) investment from one of the biggest private equity firms in America.

The once very successful Edinburgh-based family firm will see about 50 per cent of it handed over to GSO Capital Partners. Though it will see present chief executive Keith Miller stay in his role, many will mourn the loss of its independence.

However, it was a deal that had to be made, as the firm struggled with debts of £600m ($934m).

Though it gives Miller a chance to move the company forward, (something it has already started with the acquisition of distressed assets at auction), the incoming investors do have their own plans.

The idea is that they will be in position to take advantage of the UK property recovery and pick up presently stalled developments, thus earning significant income.

The deal will be viewed by other Scottish companies still struggling to find investment for expansion with mixed emotions.

On the one hand they will naturally see the benefits but, that such a large share has been handed over, and to a foreign investor, will be something many business owners would not be keen to replicate.

There other possibilities though, which will also ensure money stays within Scotland’s economy. With the help of Scottish invoice factoring companies, much needed investment can be secured, without having to compromise on ownership and control.

For their part though, it is clearly the right deal for Miller Group at the right time, with their Chief Exec saying:

“I am delighted that we have attracted a significant capital investment from one of the world’s leading financial investors.”

'Disclaimer: The information contained in these articles is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.

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