As tax year end approaches, we are looking at a number of fund solutions in the space for you to consider
The Newable EIS Scale-Up Fund 3 seeks to leverage the company’s corporate infrastructure to invest in knowledge intensive companies at the scale-up growth stage.
Newable is a leading provider of serviced office, advisory, lending and equity solutions to some 12,000 SMEs per annum. Offering the expertise of around 220 professionals, the Newable EIS Scale-Up Fund 3 has a unique infrastructure from which to originate, undertake due diligence, execute, support, monitor and ultimately exit investments.
Newable is independently recognised as one of the UK’s leading investment networks and draws on a 36 year track record (bolstered by the acquisition of London Business Angels in April 2017) as well as long term partnerships with the UK government and business community.
The Fund aims to provide investors with a diversified portfolio of 7-10 knowledge intensive companies, offering investors exposure to an exciting asset class without the need to stock-pick and commit management time.
Risk is partially mitigated through a selection methodology and due diligence built around Newable’s 500+ investor group as well as by leveraging the Enterprise Investment Scheme for early stage investments.
Please note TYE close on 15th March 2020 for deployment by 5th April.
Fund structure
Evergreen Fund model with no final termination date
Target return
20% IRR/3x Capital
Target portfolio
7-10 early stage knowledge intensive companies per subscription
Fee
Initial subscription fee of 2% for advised and 4% for non-advised clients
Management fee of 1% plus VAT applies for the first year only. There is a performance fee of 20% with a 1.1x hurdle.
Target term
12 -18 month deployment cycle per subscription 5-8 years for target exits
Investment proposition
The Fund will target the funding gap that exists for companies which have de-risked their technology, developed traction with customers and now seek funding to scale their commercial operations. The Fund aims to provide investors with a diversified portfolio of 7-10 qualifying companies per investment.
Investment approach
Newable offer investors access to the knowledge and investment skillset that they have developed by being technology sector focussed.
The sectors in which we specialise provide particular opportunities created through the emergence of the fourth industrial revolution.
This expertise, combined with the strong analytical skillset across Newable’s Investment Committee and Investor Network leads to a competitive advantage for the Fund.
Key areas of interest include:
- Electronics: Hardware, Components & Firmware
- Automation: AI, Data Science, Cyber
- Healthcare: Digital Health, Genomics & Devices
- Space: Downstream Data Technologies
Entrepreneurs might like to read this short article explaining Newable’s approach.
