It might sound like the name of a high-speed vacuum cleaner, but the Thermo Amex Convertible Growth Fund I is a new private limited partnership fund that invests in small- to midcap technology companies listed on the American Stock Exchange.
Of the most recent 100 listings on the AMEX, more than one-third have been from related fields, including information and health care technology sectors.
The fund, created by Thermo Electron Corp., generally will purchase convertible debt securities in private placements of $3 million to $7 million. The fund is expected to invest in 10 to 20 AMEX companies, for a total of up to $140 million.
The AMEX will pay the fund $600,000 during the first three years to defray certain start-up and administrative expenses, but the exchange is not an investor and will not participate in investment decisions. Investment decisions will be made by a committee that includes John Hatsopoulos, CFO of Thermo Electron.