At a glance
Investment objective – To realise capital gains from a portfolio of growth companies with the additional enhancement of EIS tax relief
Investment strategy – Portfolio of promising UK-based companies which typically struggle to raise finance because of the funding gap in the UK market
Sector focus – Technology
Investment criteria – these typically include:
- Exceptional and proven management team
- Sustainable competitive advantage
- Revenue generating and moving towards profitability
- Dynamic and growing underlying market
- Significant growth potential and scalability
- Attractive entry price
- Strong cashflow
- Clear exit route
Target returns – 2-3 x Return on Investment (excluding tax reliefs)
Portfolio management – We actively monitor investments, provide quarterly valuations, and half yearly investee company reports within our online investor portal and ad hoc reporting where required
Holding period – Intention is to exit within 3-5 years of investment, subject to market conditions, via trade sale, IPO, or, where appropriate, sale to strategic co-investor
Fees – Please refer to Information Memorandum
Minimum investment – £15,000
Sectoral breakdown
The Fund invests in high growth technology companies with proprietary technology, for which there is high demand.
The Technology sectors invested in at the current time include:
- FinTech
- Entertainment
- Security
- Enterprise Software
- Internet of Things
- EdTech
- Engineering
- Navigation
- AdTech
Attractive EIS tax benefits
EIS tax benefits under current legislation are:
- 30% income tax relief on up to £1m of investment per tax year, with a further £1m per tax year available for Knowledge Intensive classified businesses
- Carry back income tax relief one year where required
- Capital Gains Tax (CGT) exemption on disposal of EIS shares after 3 years
- Defer unlimited existing CGT liability by reinvesting in EIS shares
- Exemption from Inheritance Tax after investment held for 2 years
- Downside risk protection as losses on the sale of any EIS shares can be set off against either income or capital gains. Loss relief is calculated on a deal-by-deal basis giving an optimum blend of tax-free gains and downside protection.
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