![\"David](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2026\/01\/David-Ritchie-1.png\")
Scotland\u2019s state-owned development bank is tightening its exposure to risk by backing companies with an established growth record and a clear market advantage in their sector.<\/p>\n
David Ritchie, who was installed as chief executive of the Scottish National Investment Bank in January, has also revealed he will broaden the range of companies it is targeting.<\/p>\n
It will no longer limit its innovation mission to technology and life sciences and will become \u201csector agnostic\u201d. Significantly, this includes defence-related activities.<\/p>\n
The Bank will take a bigger role in stimulating the housing market and will be the commercial partner of More Homes Scotland, the Scottish Government\u2019s new agency set up to address the housing emergency.<\/p>\n
The newly-published investment strategy and business plan for the coming year acknowledges \u201cportfolio failures\u201d which in recent years included investments written off in the collapse of laser firm M Squared and Circularity Scotland which was set up to run the aborted deposit return scheme.<\/p>\n
It says these losses \u201care an expected part of investment, particularly for a development bank that is mandated to take on higher risk. The Bank has reviewed and identified lessons to be learnt from failed assets.\u201d<\/p>\n
Its new strategy states that its focus will be on businesses with \u201cdemonstrated growth and a differentiated position in the market\u201d. <\/p>\n
Mr Ritchie, who was promoted from chief strategy officer to succeed Al Denholm in the top job, said: \u201cThe Bank is entering its next phase of maturity. This is an opportunity for us to learn from our first five years and sharpen our focus on the commercial returns that will ultimately deliver long-term societal impact.\u00a0<\/p>\n \u201cWhile our risk appetite remains unchanged, our new strategy ensures we also stay grounded in our commercial fundamentals. Our vision is to become a perpetual fund that delivers impact and generates returns that can be reinvested, harnessing the potential of emerging opportunities for future generations.\u201d<\/p>\n Mark Munro, chief investment officer, adds: \u201cWe have \u2026 refreshed our approach to delivering our mission objectives. While our core missions remain unchanged, we have sharpened how we translate them into investment decisions, portfolio construction and impact delivery.<\/p>\n \u201cInnovation will focus on businesses with a track record of growth and take an agnostic approach to sector. This is an exciting progression or the innovation mission and one, I think, will energise the wider market.\u201d<\/p>\n Investment in innovative companies \u201cwill predominantly focus on businesses with demonstrated traction and revenue growth of 20% p.a., sustained over a 2-year period\u201d. These businesses will be seeking investment rounds in excess of \u00a34 million plus.\u00a0<\/p>\n \u201cWhen engaging with the Bank we expect to see demonstrable product market fit and an established route to market which underpins the investment case,\u201d it says.<\/p>\n In addition to investing in healthtech, biotech, AI and digital technologies, circular economy and advanced manufacturing technologies, it says the Bank \u201cwill also consider defence-related opportunities where they align with the \u201cresponsible and ethical investment policy and wider Bank impact approach\u201d.<\/p>\n It will consider opportunities in the life science sectors \u201con a selective basis with a focus on later stage development and trials\u201d.<\/p>\n Mr Ritchie\u2019s starting salary as CEO of the bank was \u00a3214,347, which was lower than the \u00a3240,000 paid to Mr Denholm when he joined in May 2023. Mr Denholm retired after a 40-year career in the investment industry.\u00a0<\/p>\n Bulletin:<\/strong>\u00a0Sign up for our breakfast email of the day\u2019s breaking news<\/em><\/p>\n \t <\/div>\n![\"Al](\"https:\/\/dailybusinessgroup.co.uk\/wp-content\/uploads\/2023\/04\/Al-Denholm-new.png\")