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Matrix Private Equity Partners launches VCT fund

Investment adviser Matrix Private Equity Partners has launched a fund to give investors a tax-advantaged route into investing in management buyouts. 

Investment adviser Matrix Private Equity Partners has launched a fund to give investors a tax-advantaged route into investing in management buyouts. 

Matrix Income & Growth 2 VCT is looking to raise up to GBP15m through a C share offer, which it will invest alongside its four other income and growth VCTs in management buyouts of profitable, cash generative, privately owned companies.

MPEP buyout investments comprise high yielding loan stock as well as ordinary shares which can give a VCT the ability to pay tax-free dividends from surplus income generated without having to rely on exits from investments.  

VCTs have an upfront 30 per cent tax break, plus tax free dividends. 

Mark Wignall, managing partner of MPEP (pictured), says: ‘MPEP is in great shape for 2009 and we see this as a time to grow and a chance to capitalise on opportunities. Through 2007 and 2008, we didn’t over pay, we didn’t over gear nor over commit. Free from the distraction of portfolio distress, MPEP has significant liquidity available for investment. ‘

Jonathan Gregory, new investment partner at MPEP, adds: ‘The recession will create excellent buying conditions at low prices for those VCTs with cash to invest. Historically, superior returns have been achieved by investing at the low point in a cycle. Our strong performance track record and successful investment strategy coupled with cash to invest, puts us in a very good position to maximise the opportunity.’

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