The accounting firm KPMG is seeking to take advantage of the booming market for raising funds for technology companies by entering the capital of a specialist in venture capital advice.
According to Sky News, KPMG will announce on Thursday the formation of a joint venture with Acceleris, with the auditing giant acquiring a 50% stake in its new partner.
The deal, which will be subject to the approval of the Financial Conduct Authority, will lead to the formation of KPMG Acceleris.
The new entity will offer fundraising and advisory services in the UK and elsewhere, and will focus on fast-growing companies in the technology and life sciences sectors.
It will also target entrepreneurs operating in the environmental, social and governance (ESG) space, reflecting the increase in investor demand in this area.
The market for start-ups trying to raise capital has exploded in recent years, according to tech-focused business groups, despite the recent correction in valuations of many publicly traded tech companies.
Jon Holt, Managing Director of KPMG UK, said: “Fast-growing businesses are the heart of the UK economy, but access to finance remains a major hurdle for entrepreneurs trying to grow their businesses.
“By partnering with Acceleris, we will enable companies to unlock the financing they need and help them navigate what remains an unstable operating environment.”
KPMG’s move into the venture capital fundraising space comes amid sweeping changes to the structure of the big four auditors in Britain.
Last year, she sold her restructuring practice to her management team and private equity firm HIG Europe amid growing concerns about the impact of audit conflict rules on the division’s ability to accept new customers.
Acceleris was launched in 2000 and claims to have raised over £150m for its clients during that time.
The KPMG joint venture will be led by the Acceleris management team, including founder Norman Molyneux.
Jonathan Boyers, KPMG UK partner and head of its corporate finance division, said: “The number one issue for most start-ups, especially in the technology and life sciences sectors, is the need to raise funds.
“The UK venture capital market has seen a rapid increase in the number of start-ups that have successfully raised funds to grow in recent years, as well as interest from investors looking to deploy capital into ventures. quality.
“However, fundraising remains a challenge, and the need for a stronger infrastructure to better support those looking to take their business to the next level remains.”
He added that access to KPMG’s network would help start-ups “move from early-stage fundraising through the lifecycle to exit, and beyond.”
Mr. Boyers and Warren Middleton, a senior partner in KPMG’s Manchester office, will join the board of directors of the joint venture.