A group of top fund managers has helped a consortium of London tech investors launch their third fund in as many years aimed at channelling funds into fast-growing AI, fintech and mobility firms.
London Technology Club (LTC) is targeting raising over $40m (£30m) to be injected into between 20 and 25 investments over a one-year period, it announced today.
American, British, European and MENA-based firms will be prioritised.
Members of the investment community’s top brass sit on the LTC’s advisory board, including Martin Gilbert, chief and co-funder of Aberdeen Asset Management between 1983-2017 and Peter Brabeck-Letmathe, former chairman and chief executive of the Nestlé Group and board member of the World Economic Forum.
The latest fund launch comes after the LTC created the Pledge Fund I, which raised $23m (£17m) and returned 30 per cent of capital back to investors in less than two years.
It also doubled assets under management in the same period.
LTC has also launched another vehicle worth $30m (£23m).
The Covid-19 crisis has strengthened sentiment toward tech firms as a result of it boosting demand for digital devices amid greater incorporation of remote working practices among white-collar workers.
Private equity investments have generated significant interest in recent years due to investors seeking out higher yielding assets amid a historic low interest rate environment.
Low interest rates and central banks flooding markets with cheap money has also left investors awash with cash to diversify their portfolios by increasing exposure to alternative assets.
Konstantin Sidorov, Founder, chief executive and general partner at LTC, said: “The technology revolution of the 21st century has positively transformed the way we do business, shop, travel and receive healthcare, but for this rate of innovation to continue we must ensure that tech enterprises are backed with the growth capital they require.”
“Our third fund will channel investment into the leading tech companies of tomorrow to enable them to reach their potential,” he added.
“The growth will generate long-term returns to investors, employment opportunities for the next generation, and the benefits of innovation to consumers, businesses and the community.”