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Wall Street Says Ain’t A Damn Thing Funny About Chasing Big Gay Money

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Wall Street is putting a whole new spin on LGBT equality these days by creating a bigger more user friendly playing field for gay businesses looking to expand—-but needing investors as well as some solid financial expertise.  After identifying the above scenario as an untapped cash cow long due for some loving and specialized attention, London-based investment firm Galileo Capital Management created boutique investment management unit LGBT Capital. The new startup will focus on the global rainbow market.

To kick things off, they’re creating the first ever fund for investments in gay products and services worldwide called the LGBT Consumer Sector Investment Fund. This is all due to the growing muscle and dollar power of the LGBT market, according to an article about LGBT Capital in the New York Times (NYT).

In addition, the NYT says that what also sparked the creation of LGBT Capital by Galileo is the fact a significant number of gay business owners and managers and found that many of their capital plans fell apart because of a lack of professional business development advice available and the shortage of advice on how to access external investors.

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

A recent survey commissioned by Thompson and his business partner Anders Jacobsen, revealed that 80% of LGBT companies believe there is insufficient specialist advice on capital raising and structure as well as merger and acquisition. The survey also found 100% of potential investors in LGBT companies did not proceed with their investments, with 80% citing inadequate funding and capital structure as the main reason.

~New York Times: Galileo Sets Up LGBT Capital for Gay Market

LGBT Capital Web site: LGBT Capital

Press Release (PDF): Galileo Capital Management Launches LGBT Capital