Matrix Group, the finance house with a small-cap private equity operation, has launched a private equity fund advisory business targeting new and existing managers looking to raise up to £150 million ($283 million; €222 million).
As part of the launch, Matrix has hired Ray Coole and Jonathan Leinmuller to set up a dedicated fund advisory business focusing on providing fundraising and investor relations services to private equity fund managers.
Coole was formerly a director at Evolution Beeson Gregory, where he was responsible for private equity fundraising for third party clients. Leinmuller was formerly at Eiger Capital in Luxembourg, and Abbey National Treasury Services in London, where he was responsible for numerous fund and direct investments.
Coole said the launch came at a promising time in the fundraising cycle. “Many venture capitalists are seeking to re-enter the fundraising market over the next two years. Recently, we have seen the general sentiment towards venture capital become more positive and limited partners’ allocations increase, which is excellent news for those private equity houses seeking to raise funds.”
“Matrix will focus on providing advice and fundraising services to both established and new managers seeking to raise funds in the sub-£150 million area. We believe we are in a strong position in this segment of the market, given that we bring both buy and sell-side experience to the party.”
Matrix also intends to provide an investor relations service to a restricted number of fund managers. “For too long general partners have raised money from limited partners and have subsequently neglected their reporting functions,” Coole added. “The larger buyout houses are currently addressing this issue by having a dedicated internal resource. Smaller fund managers will find it difficult to act as investor and marketer without utilising an external service.”
Matrix, set up in 1987, has six operating divisions encompassing property, equity and hedge fund investing, corporate finance and venture capital services, film investment, and specialised tax products.