Brian Souter reveals investment wealth

Oct 26 2010 by Gordon Bannerman, Perthshire Advertiser Tuesday

SOUTER Investments, the private investment vehicle of Perth transport tycoon Brian Souter, has revealed it was picking-up speed and bucking the recession.

The wealthy Stagecoach co-founder, who set-up the bus company with sister Ann Gloag 30 years ago in the Fair City, now has an investment portfolio valued at breath-taking £400 million.

And it has leapt in value by 41% over the last three years despite the worst financial crisis since the twenties.

It’s the first time the normally low-profile Mr Souter, who features regularly on the country’s rich list, has ever published information on his fortune – and it’s a far cry from the distant days when the duo scraped together the cash to launch their first bus on the route to London.

The Stagecoach empire spans numerous countries and now employs 400,000 people.

And while always on the look-out for investment opportunities, Mr Souter is warning business that “cash will be king” as he predicts a slow rate of recovery.

Mr Souter said: “Like many entrepreneurs I have historically been discreet about my family investment portfolio. However, given the extent of the performance and the increasing level of interest I have decided that going forward we should produce a report of the activities on a regular basis.

“This compares well against the performance of Britain’s largest quoted companies,” said Mr Souter, following the publication of Souter Investments’ first Update and Investment Review.

Souter Investments was set up in 2006 by award-winning businessman Mr Souter and Andy Macfie, an experienced investor with more than 20 years in private equity, to create a diverse portfolio of traditional investments, including property and quoted stocks – but increasingly unquoted investments.

The bedrock of the portfolio is Stagecoach Group. It accounts for 50% of the Souter family’s investments.

Souter Investments also has sizeable stakes in Sunseeker, the luxury yacht brand, Alexander Dennis, Britain’s biggest bus and coach builder, Argent, the biofuel business, the insurer esure, price aggregator Gocompare, as well as a New Zealand bus and ferry group.

Mr Souter continued: “The value of our investments has risen handsomely despite the world experiencing the biggest financial crisis since the Great Depression.

“As prospects for a double dip recession recede we look forward to the future with confidence. Our deal flow is strong and we continue to see many interesting opportunities to invest at attractive valuations.”

Mr Macfie added: “Our portfolio has performed well and diversified significantly over the last three years. We have a substantial war chest available to us and look forward to continuing to invest in sound companies with good prospects, whilst remaining alive to opportunities in other asset classes.”

Souter Investments has grown to a team of five, with offices in Edinburgh and Perth.

Mr Souter is heavily involved in the Church of the Nazarene in his native Perth and has instructed that the portfolio avoids investments in alcohol, gambling, tobacco and armaments.

A trust set-up with his wife Betty has distributed £20 million to 2700 good causes at home and abroad, aimed at the relief of human suffering.