Galileo eyes $20m fund for LGBT deals

Boutique investment firm Galileo Capital Management aims to raise around $20 million for a global private equity fund that will invest in consumer products and services companies catering to the lesbian, gay, bisexual and transgender (LGBT) communities.

The buying power associated with the consumer group is large: in the US alone, the LGBT community's buying power is expected to exceed $835 billion by 2011, according to research from LGBT-focused communications firm Witeck-Combs and Marketresearch.com.

There is a huge interest from investors to be part of the growth in the LGBT market but without concentrating risk in just one or two investments. Paul Thompson

“There is a huge interest from investors to be part of the growth in the LGBT market but without concentrating risk in just one or two investments,” said Paul Thompson, Galileo’s Hong Kong-based founder and principal. “The fund we are preparing will provide a diversified portfolio of investments, both geographically and by business sector, in order to satisfy this investor demand.”

The firm expects to launch the fund in the second half of this year and aims to raise more than $20 million from high net worth individuals and institutions.

The fund will be managed by LGBT Capital, Galileo’s recently launched corporate advisory and investment management unit specialising in the LGBT consumer market, Thompson said. It will be run out of London with Thompson providing its regional coverage in Asia.

“LGBT Capital believes that as LGBT freedoms continue to develop, growing LGBT companies will increasingly look to raise capital, merge and acquire, which will require specialist advice and capital raising options,” a Galileo statement noted.

London and Hong Kong-based Galileo was set up in January by Thompson and Anders Jacobsen. The firm intends to launch and manage a range of private equity funds, hedge funds, venture capital funds and mutual funds.

The funds launched by Galileo will target under-invested business sectors. The firm will also advise clients on business entry strategies into China, including the sourcing of business partners in the country, a statement from the firm noted at the time.