London-based Pavilion Investment House has undergone an management buyout from its Canadian parent group by former UBS duo Matthew Hulme and Campbell Gordon, who launched the UK wealth management business back in 2006.

Following the MBO, the firm has been renamed Optimus Capital, and its new direction has been additionally marked with the launch of a new private equity vehicle called the Optimus Capital Opportunities Fund.

The new fund will offer convertible loans to smaller and AIM-listed companies across a variety of sectors, asking of them a coupon of at least 10 per cent a year (paid quarterly). With an redemption premium in the region of about 10 per cent investors are looking at a net distributed income in the region of 8 per cent.

The problem facing firms on the smaller public markets and some of the public markets is that “risk appetite is non-existent”, making it hard for them to garner funds, Hulme told WealthBriefing. “There’s just not much appetite from traditional issuers of capital… things are very tricky,” he said.