Matrix Private Equity Partners has launched a GBP21m linked fundraising across three of the venture capital trusts it manages that focus on investing in management buyouts.
Mark Wignall, chief executive of Matrix, says: “A tried and tested investment strategy that focuses on management buyouts at the lower risk end of the market has put us in a very strong position. Our market coverage and strong deal flow enables us to invest in good businesses at good prices. At this lower point in the economic cycle company valuations have become more attractive, with positive signs that vendors want to sell believing that they won’t get a better price if they wait another year or so. Also with the banks not participating in cash flow lending for smaller company mergers and acquisitions, management teams are increasingly looking to investors like Matrix for backing.”
The launch follows the announcement last week of Matrix investing GBP5m in the management buyout of RDL, the European recruitment provider within the pharmaceutical, business intelligence and IT sectors.
The linked offer is open for investments of between GBP5,000 and GBP200,000 to be split equally across three VCTs: Matrix Income & Growth VCT, Matrix Income & Growth 4 VCT and The Income & Growth VCT.
The three VCTs provide access to a large combined asset pool of almost GBP100m with a portfolio of over 50 companies.
Previous fundraisings for the three linked VCTs have provided returns for investors in excess of ten per cent per annum.
Matrix is offering an incentive for early bird investors of an extra 1.5 per cent of shares for investors who choose to invest before 17 January 2011. The first of the three linked VCTs in the offer has also announced a dividend of four pence which these early investors will also be entitled to receive.
The offer size is GBP21m. Matrix has already received GBP1.4m at launch that will be subscribed at the first allotment of shares in January.
