Booming Scots M&A activity doesn't translate into jobs
Despite the frenzy of M&A activity stimulated by private equity groups, hiring in the sector in Scotland is static - but that may soon change.
The increased funds PE firms have at their disposal has created a mini boom in the mid-market M&A and MBO market in Scotland, but so far that has not translated into increased hiring.
Gail McManus, director of Private Equity Recruitment, says of hiring trends within the Scottish PE market: "Generally in Scotland there hasn't been much movement in hiring and levels are where they were last year. But we have seen a noticeable pick up in demand for people with good energy experience.
"There's a finite core of people with PE energy experience, so people with oil and energy backgrounds in banks or transaction-related areas have scope to switch sectors to PE."
Recruiters are quick to point out that even if increased PE activity hasn't yet increased jobs in the sector, it has still had a positive impact on the wider financial services industry in Scotland.
A spokesperson for recruiter Joslin Rowe comments: "Increased M&A is always good news in terms of market confidence and therefore job flow."
Meanwhile, Lloyds TSB Development Capital (LDC), the bank's mid-market private equity arm, announced plans this week to establish a dedicated business team in Scotland. LDC is looking for senior investment professionals who will be based in either Glasgow or Edinburgh.
And earlier this month, Edinburgh based Dunedin Capital Partners won the British Venture Capital Association's Private Equity House of the Year title - the industry's top accolade in the UK.
