ProVen merges with GMA Capital

US venture capitalist and investment bank GMA Capital is to take control of its UK associate ProVen Private Equity.

GMA, the US private equity firm, has bought its UK affiliate ProVen Private Equity for an undisclosed sum to create Beringea, a firm with more than $275m under management and a portfolio of some 50 companies. According to Gordon Powers, the former CEO of ProVen and executive chairman of the new business, the change gives the company greater resources both financially and logistically.

An example of their working relationship is GMA’s management of ProVen's $65m InvestCare Fund, aimed at the US healthcare sector. “The two companies have been working together now for a long time. In going forward it felt better to consolidate and become one. I believe it is vital to keep management teams together and so we have expanded the business accordingly,” said Powers.

The merger will not take place overnight, he added, and in the short-term, ProVen will focus on extending its lineage of its Global Rights funds. “We believe there to be many market opportunities for this type of fund in both the US and Europe, and so will look to develop a third vehicle by the end of the first half this year.”

The third fund will follow the firm’s established strategy of investing in companies with valuable intellectual property rights or enabling technology in the media, entertainment, information and leisure industries operating in the US and Europe.

ProVen, founded in 1984, focuses on small-to-medium-sized businesses developing emerging media and entertainment technologies. Recent investments include a £3.1m injection into Sport Entertainment & Media Group, a sports personality agency, and an undisclosed sum in Espresso Broadband, which develops broadband educational content for teachers and pupils in primary and secondary schools.

GMA offers growth capital to established companies and merger and acquisition advice, financing assistance, capital raising and other investment banking services to closely held businesses. It manages more than $65m of funds. As well as managing InvestCare, the firm also looks after ProVen’s Global Rights II fund.