US private equity group makes first swoop for Scottish firm AMERICAN private equity firm Oaktree Capital Management will today unveil its first investment in Scotland when it takes a majority stake in Aberdeen-based Integrated Subsea Services (ISS). Oaktree, which made a muted impact with its New York flotation in April, will acquire 62.5 per cent of ISS after buying all of Lloyds Banking Group's shares in the company and also some of the directors" holdings. Bank of Scotland, now owned by Lloyds, paid £80m for its holding in ISS in 2008, valuing the firm at £127m. Oaktree declined to say how much it has paid. Managing director Ian Herd and fellow director Bruce Webster will retain minority stakes in the business and will also keep their seats on its board. ISS said the deal would give it access to diver-support vessels owned and operated by Iremis Offshore, another company in which Oaktree holds a stake. Herd said: "In this currently very-tight market, access to these vessels will give us a vital competitive edge." Nicolas Mouté, of Oaktree, added: "By joining assets together with quality services, Iremis and ISS will be able to offer a broader array of services." ISS provides divers and a fleet of 23 remotely-operated vehicles to oil and gas companies to carry out underwater engineering and inspection work. Oaktree's existing investments include Yorkshire-based R&R Ice Cream - Europe's third-largest ice cream maker and the owner of brands such as Lyons Maid, Nestle Ice Creams and Skinny Cow - and American aluminium processor Aleris. The private equity firm is also believed to be mulling a second takeover bid for Jakks Pacific, which manufactures toys including Hello Kitty, Pokemon and the Smurfs.