Billionaire Virgin Group founder Sir Richard Branson is seeking to raise £441million to snap up consumer companies.
The 67-year-old tycoon has teamed up with private equity firm Metric Capital to launch a new fund which intends to use the cash for striking deals worth up to £1.8billion.
Branson will be working with Metric’s founder John Sinik, who he has known for more than 20 years.
Buying spree: Sir Richard Branson has teamed up with private equity firm Metric Capital to launch a new fund which intends to use the cash for striking deals worth up to £1.8bn
The pair got to know each other when Sinik, 49, worked as an investment banker at UBS.
The Virgin boss, who now lives in the British Virgin Islands, said: ‘I have been impressed by the development and growth of Metric Capital.
‘Their experience in the rapidly changing consumer and digital markets is particularly attractive and I look forward to helping John and his team with this new fund.’
The fund intends to invest in firms which fit Branson’s previous experience, such as in the luxury goods, leisure and food and drink industries. It is hoped his reputation and contacts book will attract more investors.
The aim is to back established businesses looking to grow rapidly or expand into new operations, typically for around five years.
Metric has previously had success in the consumer market, and it is where Branson made his fortune.
Bosses believe the market is changing at a faster pace than ever due to the rise of the internet, and see opportunities for successful businesses to grow fast and generate huge profits.
They also feel that young consumers are looking for experiences rather than goods and want to cash in on this trend.
The aim is to generate returns of 20 per cent, with 10 per cent of the profits going to women’s and children’s charities.