GAY HEDGE FUND BLASTS OFF

Galileo Capital Management in the US has launched an investment fund focused on the gays.

Anders Jacobsen and Paul Thompson, former lovers of Goldman Sachs, Prudential Financial, Bankers Trust and Chase Manhatten, launched the LGBT Capital fund in two parts.

First came a specialist corporate advice and investment management unit focused on gay consumer markets, while part two will provide advice and business development services for companies that serve the gays.

“LGBT-oriented business owners often have the desire to expand but also frequently lack the expertise, correct capital structure or know–how to access funding”

According to the US National Gay and Lesbian Chamber of Commerce, the gay consumer business is massive – worth nearly $700 billion and projected to reach $845 billion by 2011.

A recent survey by Hedgeco also found that 80% of gay companies require capital for expansion, 100% of them have expansion plans and 100% of gay companies would consider mergers, acquisition and third party investment.

“LGBT-oriented business owners often have the desire to expand but also frequently lack the expertise, correct capital structure or know–how to access funding” said Paul Thompson, co-founder of LGBT Capital. “We believe there is a significant opportunity to provide the financial expertise typically found within an investment banking context to LGBT companies, which in turn would allow quality companies to secure funding”.

“A LGBT oriented resort was up for sale recently but despite many parties expressing interest, sufficient capital could not be raised by any one company or investor on their own” Paul Thompson said. “There is huge interest from investors to be part of the growth in the LGBT market but without concentrating risk in just one or two investments. The Fund we are preparing will provide a diversified portfolio of investments, both geographically and by business sector, in order to satisfy this investor demand”.

LGBT Capital has an active charitable program and is committed to donating 10% of profits to supporting gay charities, with particular focus on LGBT freedoms and HIV/AIDS.