Matrix Private Equity launches Matrix Enterprise Fund

10 December 2001

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Matrix Private Equity announced the launch, on 1 December, of the Matrix Enterprise Fund (MEF) with a target of Â£20m. The fund is designed to appeal to experienced private investors and trustees seeking lower-risk investment products; it is essentially an EIS portfolio fund that takes advantage of existing EIS legislation for which both individuals and trustees qualify. Matrix hopes that potential investors will be attracted to MEF because it means spreading their investment throughout a number of companies rather investing directly in one company through a broker or an IFA, and also because of the generous tax allowances for which they will be eligible. Matrix has set a minimum subscription amount of Â£25,000 (there is a maximum investment amount of Â£150,000 per tax year for individuals claiming EIS tax relief); the closing date for investments is 31 March 2001. The initial management fee is 5%, the annual fee is 2.5% and the performance fee is 20% of the gross gain to investors. Eligible introducers (including IFAs) will receive a commission of 2%.

Investments

In order to minimise risk MEF will invest development capital only in those companies with established revenue streams and which are profitable or expected to become profitable in the short term. Matrix will invest the fund in eight to ten companies across a variety of sectors.

People

MEF will be managed by a team of seven at Matrix Private Equity led by Mark Burgess, managing director, and Helen Sinclair, director and will be sponsored by Matrix-Securities.