Power Amp Music, a venture capital, investment advisory and marketing firm, has launched a fund looking to capitalise on the UK music industry.

The Power Amp Music Fund aims to raise £10 million to invest in a “diversified portfolio” of homegrown musical talent. The investment vehicle qualifies as an Approved Investment Fund under the government tax-saving Enterprise Investment Scheme.

The music management team is fronted by industry figurehead Jazz Summers, who is known in the music industry for his management of artists including the Verve, Snow Patrol and Wham!

The fund’s strategy is to identify and engage with UK artists via music development companies. These companies are directed by Power Amp Music and provide development services to the artists, including: recording, production, promotion, advertising, distribution, touring, artwork/design, merchandising, sponsorship, and publishing.

Tom Bywater, managing director and senior investment manager of Power Amp Music, said: “The music market is undergoing a fundamental shift and the major labels are trying to stop the rot. The industry was slow to react to the digital age and now we are seeing it fail to adapt its overall business model to combine artists’ needs and interests with wider profitability.