New healthcare technology jobs predicted for Glasgow following investment by council pension fund

Glasgow City Chamberws - Image credit: Viv Lynch via Flickr

Glasgow City Council is predicting an influx of new healthcare technology jobs, thanks to a major investment by the local council pension fund.

Strathclyde Pension Fund (SPS), which manages the retirement savings of staff at Glasgow City Council and neighbouring local authorities in the west of Scotland, has agreed a £20m investment in companies developing innovative diagnostic, treatment or monitoring technologies for the healthcare industry.

The deal is expected to see US firms either relocate or open new bases in the UK, with a particular focus on Scotland and the Glasgow area.

SPF approved the £20m investment in the Par Equity HealthTech Fund at a committee meeting earlier this week.

The fund is expected to raise up to £150m to invest in start-up health technology companies in the UK and US, with a target 20 per cent return.

Par Equity already has substantial experience in the science, medical, engineering and commercial sectors, including a partnership with the University of Strathclyde’s Institute of Medical Devices.

It usually makes investments of between £2m and £5m and works with the companies to develop their product, gain regulatory approval and bring it to market.

Chair of the pension fund and city treasurer Councillor Allan Gow said: “This is a great opportunity – for the fund and its members, but also for Glasgow and the whole city region.

“We’re going to see members’ savings working hard for them and their retirements, but also creating skilled jobs on their doorstep.”

He added: “A large, diverse fund like ours has investments all over the world – and I’ve no doubt many of them seem remote to members, whether they are paying in every four weeks, or already drawing their pension.

“This is different. It is an investment in their own future, but also an investment in the communities where they live and work.”

The fund has also agreed a £30m investment in a fund by Beechbrook Capital, which will provide loans to SMEs in the UK and across Northern Europe.

Strathclyde Pension Fund is one of the two biggest Local Government Pension Scheme funds, with over 230,000 members and £20bn of investments.

It also ranks within the top 20 UK pension funds and is one of the top 50 European pension funds.