Strategy: Exposure to a portfolio of deep technology companies in sectors in which the team has expertise.
Track record: With the current structure and process only in place for five years, the track record lacks depth.
The Investment Manager
Team: Diverse range of experience in team, with clear strategy and good support from its Investment Advisory Committee and angel network.
Company size: Although the investment team is small, the IAC and angel network bring more than adequate scale to operations.
Nuts & Bolts
Duration: The Fund is evergreen, with quarterly closings.
Diversification: The manager expects to provide between seven and ten investments for each closing.
Valuation: Usually changes at next financing or on writedown.
Fees: Combination of direct fees and company charges. Unusually, fee rates decline over time.
Performance fee: Charged at 20% on aggregate returns over 110% of amount invested in companies on a portfolio basis. Charged on in-specie transfers.
Target returns: The target IRR of 20% or 3x 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 ones will do very well, but those who fail may do so completely.