Matrix Private Equity is sticking to its plan to launch a fund each year with its second Matrix Enterprise Fund, a special purpose fund for investors seeking lower-risk, tax efficient products. The new fund has a target of £5 million and will take advantage of existing tax incentives for which both individuals and trustees qualify.
The fund will invest in a portfolio of at least four companies concentrating on established, profitable companies, strong management teams, detailed pre-investment investigation and post-investment monitoring and control.
The first Matrix Enterprise Fund, which raised £1.5 million last year, short of its £3 million target, has completed two investments to date in security services provider FSG Security Group and fashion retailer, Signature Brands and will be fully invested by April 5.
Helen Sinclair, director of the group, said: “We are pleased to continue with our plan to launch one fund each year to meet the requirements of sophisticated investors. The second Matrix Enterprise Fund builds on our experience gained with the first fund. Individual investors and trustees can meet many of their tax planning and investment needs by including the Matrix Enterprise Fund II in their portfolios.”
She adds that the significant advantages of this fund over VCTs include 100 per cent inheritance tax relief after two years, unlimited capital gains deferral relief for gains made in the previous three years, and the return of capital and profits once the successful investments have been sold.