Specialist finance and advisory firm Trafalgar Capital Advisors (TCA) has entered into a strategic partnership with Marylebone Fund Management Group to launch the PreIpo2Ipo fund, which will provide bridge financing to innovative organisations seeking listing on small-cap exchanges or listing platforms in the UK, US, Ireland, Germany and Dubai.
The fund will generally invest via a convertible note which will convert at private valuation rate when the listing occurs giving the fund the uplift in its investment into the now public valuation. The fund will then seek to monetise its investment via the public markets. Fees are 2 and 20, with the management companies responsible for their own overheads. Minimum investment in the fund is GBP25,000.
The fund is designed to fill a gap in the marketplace for companies that wish to obtain a listing to enhance their growth. The fund will typically make investments in the GBP300,000 to GBP500,000 range as well as provide assistance through the listing process.
Bob Press (pictured), Founding Partner and CIO of Trafalgar Capital Advisors, says: "This is a natural extension of our current business model and will provide Trafalgar’s TCA Global Credit Fund with a supply of quality candidates for subsequent investing”. Trafalgar Capital Advisor’s manages TCA Global Credit Master Fund.
With an exemplary track record of companies publicly placed, Ken Denos, Managing Partner of Marylebone Fund Management Group, comments: “The synergies between our goals with the PreIpo2Ipo Fund and Trafalgar’s existing and long standing small cap experience were a natural fit for us".