First ever capital fund for gay businesses launched
February 5th, 2010 by Chloe.Setter
A London-based firm has launched a company that will specialise in lesbian and gay investments, believed to be the first of its kind in the world.
LGBT Capital, a subsidiary of global group Galileo Capital Management, is hoping to capitalise on the growth of the ‘pink pound’ by providing a service that helps gay-oriented businesses to expand and access investment.
The company, which is approved and regulated by the Financial Services Board, will provide corporate advisory and business development services for companies that serve the LGBT sector. This will include giving specialist advice to LGBT companies that are seeking capital or advice on mergers and acquisitions.
LGBT Capital also plans to launch a fund to invest in global companies that provide products/services to the LGBT community.
According to the group, gay-related businesses suffer from a lack of business development advice on how to access investment.
Co-founder Paul Thompson said: “LGBT-oriented business owners often have the desire to expand but also frequently lack the expertise, correct capital structure or know–how to access funding.
“We believe there is a significant opportunity to provide the financial expertise typically found within an investment banking context to LGBT companies which, in turn, would allow quality companies to secure funding”.
He added that there was a “huge interest from investors to be part of the growth in the LGBT market”.
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