The fund’s investment strategy is to invest in a diverse portfolio of EIS-qualifying investments in data, digital, education or health areas.

Why invest

Positives

Strategy: To fund companies that have existing products and support them in scaling up.

Issues

Track record:  No exits to date, but the unrealised figures show some promise.

 

The investment manager

Positives

Team: The team has a broad experience in corporate finance, tax and accounting, as well as investment.

Issues

Small team: The team is small, and is dependent on a couple of key people.

 

Nuts & bolts

  • Duration: The fund is expected to have an eight-year lifespan, with closings as required.
  • Diversification: The manager expects to provide 8 to 10 EIS investments in the fund, with the possibility of growing to up to 15.
  • Valuation: Reviewed twice a year, with updates on progress being sent more frequently.

 

Specific issues

  • Fees: A mixture of direct fees and those charged to the investee companies.
  • Performance fee: Charged on a portfolio basis at 20% for returns over £1.

 

Risks

  • Target returns: There is no explicit target return, but the strategy 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.