Mortgage & Property

New Insurance Professional

Family Office Bulletin


Mortgage Property

Insurance Professional

Family Office

The Committed Capital Growth Fund – a summary

The Committed Capital Growth EIS Portfolio Service aims to generate attractive tax-free returns from investments in UK based, post revenue (typically £1m+), EIS qualifying, growth stage technology companies. This is one of the most high-growth and dynamic sectors in the UK market, and our core area of expertise.

“We believe that the Fund, with its high growth investee companies and potential income tax relief of 30%, provides an effective solution for investors who are frustrated with low returns on savings, or for those who are looking to defer (or potentially reduce) a capital gain, significantly reduce or offset their income tax liability, and reduce (or potentially eliminate) exposure to inheritance tax.”

Who we are

Committed Capital Limited is a Venture Capital business based in Belgravia, London.

Established in 2001, the Investment Team has a proven track record of working with growth stage companies to create value for shareholders.

This value is achieved through careful investment selection, rigorous due diligence, efficient transaction execution and providing investee companies with ongoing hands-on support.

What we do

In analysing potential investee businesses, we look for rapid growth in the underlying market as well as a technology and business designed to benefit from this growth.

Our investee companies must have a clear and compelling proposition, be more or less fully formed and have strong management.

These factors are established during an exhaustive due diligence process, with investee companies selected based on the following criteria:

  • Dynamic market – fast growing addressable market with low competitive intensity
  • Well-positioned company – strong management team, robust forecasts for rapid growth over the investment period
  • In-demand product or service – fully developed, addressing a clear market need, with a sustainable technology-based competitive advantage
  • Post revenue – generating significant sales (typically in excess of £1m annually)
  • Clear exit route– intention to exit investments within 3 to 5 years
  • Investor protections – a significant minority (often 20-40%) of the equity is sought and typical shareholder rights required
  • Board seat – board seat required

Why invest in the fund?

  • Exceptional investment team and track record
  • We believe the market for technology growth capital investment is exceptionally attractive
  • We are hands-on investors, and this can materially mitigate the investment risk
  • Investors allocated a diverse portfolio of 8-12 companies with investments spread across sectors and expected maturities
  • Investment allocation within 12 months
  • The intention is to exit within 3 – 5 years of investment, subject to market conditions

Some key risks to be noted *

  • As with all investments capital is at risk.
  • In consequence clients should not invest in an EIS unless they can afford to lose some or all of their capital.
  • An investment in smaller and unquoted companies carries a higher risk than many other forms of investment.
  • There are significant risks associated with an investment in the Fund. The investments of the Committed Capital Growth EIS in non-quoted equity will be long-term and of an illiquid nature.
  • Investors must be prepared to tie up their money for at least 3 to 5 years, and capital preservation is not guaranteed.
  • Further risks are described in the Information Memorandum (IM). All investors MUST read the IM prior to investing in any fund.
  • Any tax reliefs are dependent upon an investor’s individual circumstances.
  • Any tax reliefs are subject to change by the authorities at any time.

* In the Information Memorandum (IM as updated) there is a comprehensive listing of risks and charges.

Investment track record

The fund has a target return of 2-3x ROI (excluding tax relief). Committed Capital has an impressive exit record in Growth stage EIS qualifying tech companies.

Since 2001 we have achieved an average 2 x ROI (excluding any tax reliefs) with an average holding period of 4 years, and have invested in 33 EIS qualifying investee companies, made 19 exits and 2 partial exits of which 20 have been profitable and just 1 has made a partial loss.

The fund’s most recent exit was on 31st July 2019. Our investors’ holding in FSB Technology (UK) Ltd was bought by a strategic buyer, with investors receiving a return on investment of 2.71x (excluding tax relief).

We put our track record down to the breadth and depth of our stringent due diligence, and our hands-on approach supporting investee companies with human capital rather than investment alone.

Continue reading article…

This Week’s Most Read

Keep updated on the most important financial events 

Make sure you are an informed

wealth professional..

Adblock Blocker

We have detected that you are using

adblocking plugin in your browser. 

IFA Magazine