GROWTH capital firm BGF has signalled it thinks the corporate economy is on the up in North East Scotland by increasing the size of its investment team in Aberdeen.

The bank-supported organisation said David Fraser has joined as an investor after spending five years with accountancy giant PwC.

Aberdeen office head Mike Sibson noted: “Despite broader uncertainty in the UK, we are seeing a renewed focus on growth across small and mid-sized companies that have weathered the recent downturn in the North East."

He said the appointment reflected confidence that the long term approach followed by BGF, which began life as the Business Growth Fund, would pay off.

The Aberdeen office has backed a range of oil services firms including the ROVOP subsea business. The sector was hit hard by the downturn triggered by the plunge in the crude price between summer 2014 and early 2016.

North Sea oil and gas firms are set to step up investment in response to the recent rally in the oil price. There have been signs the effects of the price rise are spreading through the economy, with demand for offices rising this year.

The Aberdeen team has invested £100m of equity capital across 13 companies since BGF was founded in 2011.

After appointing Mr Fraser, BGF has five investors based in Aberdeen.