The fund’s investment strategy is to invest in a diverse portfolio of EIS qualifying investments in selected technology or technology-enabled companies.

Why Invest

Positives

Strategy: Exposure to a portfolio of technology or technology-enabled companies.

Positives

Track record: Only a small number of exits to date, but the unrealised figures show some promise.

 

The Investment Manager

Positives

Team: The team is small, but experienced in a wide variety of areas in financial services.

Issues

Key person: Dominic Ward is a key person for the fund. While he is committed, he is not an Eden Rock partner/employee.

 

Nuts & Bolts

  • Duration: The fund is intended to be evergreen, with closings as required.
  • Diversification: The manager expects to provide at least six EIS investments in the fund, with some SEIS exposure if available.
  • Valuation: Reviewed twice a year, with updates on progress being sent quarterly.

 

Specific Issues

  • Fees: Direct fees only, but the aggregate is low for the sector.
  • Performance fee: Charged on a portfolio basis at 20% for returns over £1.

 

Risks

  • Target returns: The target return of tripling capital suggests a high-risk investment strategy.
  • Companies: Supplying risk capital to early-stage technology companies at the start of commercialisation. There will be a spread of company returns, as the successful investments will do very well, but those that fail may do so completely.