AIM-listed Sigma technology group has achieved a first close on its Sigma Technology Venture Fund a year on from its launch. The fund has received GBP17 million in commitments and hopes to raise up to GBP50 million at its final close.
In addition to Bank of Scotland’s founding investment of GBP7.5 million, the fund has also secured GBP7.5 million from Scottish Widows Investment Partnership. Sigma Technology Investments Limited, a wholly-owned subsidiary of Sigma is investing GBP2 million and has been appointed fund manager.
Graham Barnet, joint managing director of Sigma said the team was delighted to have reached this first target in what is a difficult fund raising climate. He added: “We are, however, currently experiencing a strong upturn in the quality and quantity of our deal flow and we expect this fund to make a contribution to creating and sustaining successful ventures in the UK, as well as driving value for Sigma’s shareholders.”
The investment objective of the fund will be to exploit opportunities in companies with high growth potential and with a strong focus on the TMT sector. Sigma works closely with its portfolio companies and, in addition to funding provides business development, corporate finance and recruitment services to investee businesses.
Graham Sturrock, head of investments and mezzanine at Bank of Scotland Corporate Banking, said: “Achieving first close in a difficult fund raising environment is great news and puts Sigma in a good position to complete fundraising while taking advantage of investment opportunities.”