Proactive Investors - Listed investment group Kelso Group Holdings PLC (LON:KLSO) has called on the government provide more support for London's AIM market "as it is the lifeblood for many small and growing British businesses".
The former activist investor earlier this year pivoted to a new strategy of providing seed investment in "listed single company acquisition vehicles" aiming to target undervalued UK businesses.
Today, Kelso announced that its first investment under the new strategy will be an investment of up to £1.5 million in Selkirk Group PLC, co-founded with the former chairman of Hut Group owner THG PLC (LON:THG), Iain McDonald.
Selkirk is looking to raise £7.5 million as part of an AIM flotation, providing it with seed funding as it looks to acquire a business valued between £30 million and £1 billion in the consumer, technology and digital media sectors.
Kelso chair Sir Nigel Knowles said: "Kelso is moving into the next phase of its corporate development with pace, to try and capitalise and unlock value on the undervalued UK stock market.
"We are pleased to have created Selkirk and that it has partnered with Belerion Capital to create value within its defined sectors.
"We are pleased to support AIM with Selkirk's IPO which we believe, despite a large reduction in companies listed in recent years, is one of the best growth exchange platforms in the world."
He said Kelso would encourage the British government "to do everything [in] its power to support the AIM market as it is the lifeblood for many small and growing British businesses".