Scottish Equity Partners (SEP) said it raised £260 million for a new venture capital fund called SEP V which was over-subscribed and has closed above target.

SEP said the fund will be invested in “high growth technology and technology-enabled companies mainly in the UK and Ireland, although investments in companies in other European countries will also be considered.”

The new fund will follow a strategy consistent with previous SEP funds — making investments of up to £20 million in growth-stage technology companies.

Investors in existing SEP funds account for 90% of commitments to the new fund.

UK investors make up 40% of the fund, with the remaining 60% from investors based in mainland Europe and the United States.

SEP’s managing partner Calum Paterson said: “This is another great milestone for us and reflects extremely well on the calibre of our team.

“The new fund gives us a very strong platform to continue to invest in companies with world class potential and we thank all of our investors for their support.”