West Coast Capital, the private equity vehicle founded by Sir Tom Hunter, was this week among the favourites to take over private housebuilder Keepmoat.
The sale of the firm, which constructs and carries out maintenance on social housing, is expected to go ahead in the near future.
A takeover is likely to value it at more than £700m.
Other private equity bidders are believed to be in the running for Keepmoat, including 3i, Warburg Pincus and Cinven. Final bids for the company were due in last week.
Keepmoat, which has a turnover of £450m and orders worth £3bn, is the latest company in the housing market to become a target for private equity firms. Social housing contractor Apollo has also attracted interest.