A new Guernsey-based closed-ended fund focusing on defence and homeland security technology is seeki...
A new Guernsey-based closed-ended fund focusing on defence and homeland security technology is seeking to raise £100m from wealthy investors.
The PegasusBridge Defence & Security fund will have a 10-year time horizon, investing in a portfolio of around 25 individual investments, mainly unquoted.
No more than 5% of the portfolio will be invested in those which are early stage or not yet making profits. Investments are likely to be held for an average of five years.
Richard Leaver, chief executive of PegasusBridge, said the homeland security industry is currently the fastest growing sector in the US and is predicted to grow from £25bn in 2003 to £120bn in 2011.
This will lead to major growth and business opportunities for companies addressing this sector, and for funds correspondingly investing in this space.
He said the fund would not invest in lethal or offensive weaponry and materials. Rather, the focus will be on technologies such as explosive detection systems, bioterror detection diagnostics and treatment, and security and surveillance companies. Companies involved in people screening and data security are also likely candidates for the fund.
Other examples of defence and security funds worldwide include Paladin Capital Group in the US, Challenge Fund in Israel, Athlone Global Security in the US, Israel and Canada, and the Carlyle Group in the US. The PegasusBridge fund is the first UK/Europe fund.
The management team has considerable experience in defence and security: chairman of the advisory board is General Sir Michael Wilkes, whose career included commanding 22 SAS and subsequently being director of special forces.
Vice-chairman Richard Excell has been, for the past decade, a senior industrialist at the DTI's Innovation Unit and an industrial adviser to international governments on innovation policy, new technologies and exploitation.
The fund was the idea of David Sebire, who chairs PegasusBridge. His career has included chairing a number of companies related to defence and security.
Leaver spent 11 years with BAE Systems on radar, communications and other electronic systems. Following a move to an international business and technology group, he became a fund manager.
Minimum investment in the fund is £100,000.
New security fund aims to raise $100m
Growing industry expected to be worth £120bn in 2011
Investments will focus on technologies, not weaponry
To promote 'long-term investment'
Switching 'hard and expensive'
Smaller funds still packing a punch
To drive progress