Steve Harris, CEO of Committed Capital, is adamant that “the interests of our investors are central to everything that we do. Investors in the Committed Capital Growth EIS trust us to manage their money, and to generate tax-relief enhanced rates of return from high growth investments in smaller UK EIS qualifying technology-enabled companies, which are dynamic and, in our view, one of the most high-growth and dynamic sectors in the UK market3, and our core area of expertise.
“Any investment we make must be intended to provide for a positive return to our investors, irrespective as to whether investors can claim the potentially generous EIS tax reliefs that are available.
“With tighter limits on annual and lifetime pension allowances, and a further freeze on the IHT threshold until 2021, increasing numbers of investors and their advisers are looking at EIS as an attractive, legitimate, tax efficient investment option.
“It is really important that potential investors read and fully understand the risks involved so that they can decide whether it is right for them”.
For this reason, Committed Capital insist that all investors read and thoroughly understand the Fund’s Information Memorandum (IM).
There’s an introduction to the Investment Manager and an overview of EIS tax benefits including:
- 30% income tax relief
- 100% capital gains tax deferral
- Loss relief of any holdings that fall in value
- 100% inheritance tax relief
- All capital gains on any holdings within the Fund are tax-free.
But note, the availability of any tax relief, including EIS, depends on the individual circumstances of each prospective investor and of the company concerned, is only available for UK investors in qualifying companies and may be subject to change in the future without notice.
A look at the Fund’s investment approach, portfolio company selection strategy, corporate finance skills and the active support offered to investee companies is followed by an analysis of investment selection.
There are snapshot introductions to 14 investee companies.
Readers are introduced to the Syndicate and Advisory Board (a group of around 150 successful entrepreneurs and leading business figures) who introduce investment opportunities to Committed Capital and are involved in the initial due diligence process; there’s also a Who’s Who of the Fund’s team of seasoned handpicked investment professionals who carry out the day to day work of identifying and processing investments and monitoring and assisting underlying investee businesses.
A closer look at EIS tax advantages follows, including an introduction to “knowledge intensive” classification and how to claim tax relief.
What about the risks?
Unflinchingly, Committed Capital commits 2 densely-worded but easy to understand pages to give a clear and unequivocal overview of the risks involved, including:
- Performance risk
- Loss of key personnel
- 3rd party borrowing
- Wider economic risk
- Changes in legislation
- Ongoing EIS qualification
- Forward-looking statements.
So often a bone of major contention, Committed Capital is upfront about fees, explaining:
- Adviser charge or commission
- 5% initial charge
- 2% annual management fee
- Performance fee of 20% of realised gains.
There’s also an 11-point Fund Summary and a handy FAQs section.
If you’d like to see what transparency in the EIS space looks like, download the Committed Capital Growth EIS IM
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