The Boxing Advantage Company Ltd

Seed Mentors Ltd / Amersham Investment Management Limited

15 Jan 2018 / Tax enhanced research

The company’s strategy is to contract boxers with good potential to make progress towards titles, fund their expenses and training in return for receiving their sponsorship rights.

Why Invest

Positives

Strategy: A genuinely unique proposition, giving exposure to the commercial revenues for 6-18 boxers.

Issues

Past performance: The returns will be contingent on the ability of the signed boxers to win championships at the highest levels.

The Management

Positives

Team: The McGuigan family bring a wealth of experience and knowledge of the boxing world, with Seed Mentors bringing professional oversight and support.

Issues

Track record: While the McGuigans have validated the business model, they have done so on a smaller scale than is planned for the company.

Nuts & Bolts

  • Offer period: The intended closing date will be 30 March 2018, or at manager discretion.
  • Diversification: There will be between 6 and 18 boxers, depending on the amount raised.
  • Valuation: There will be no explicit valuation change, though the revenues should be very transparent and investors will be able to see progress.

 Specific Issues

  • Fees:  The company will be a directed investment in the Seed Advantage EIS Fund, so will pay their standard fees.
  • Performance fee: There is no performance fee.