Symvan Capital (Fund)

Symvan Technology SEIS Fund & EIS Fund

22 Dec 2017 / Tax enhanced research

Important Note – Prohibition on marketing to retail clients in the UK

The funds’ strategy is to invest in EIS qualifying companies involved in the development, commercialisation and sale of innovative technologies or services or use them to gain a competitive advantage.

Summary

Why Invest?

Positives

Strategy: Exposure to a portfolio of early start-up or early stage technology companies

Issues

Portfolio Risk: Early stage companies carry significant risk, though Symvan have had no failures to date.

The Investment Advisor

Positives

Team: Symvan bring a broad range of capital markets experience and a focus on a company’s funding needs throughout its investment period.

Issues

Depth of Staff: The Symvan team is very small, though has very experienced advisors and only a few companies to manage.

Nuts & Bolts

  • Regulation: The funds either have Symvan as Fund Manager or have Amersham Investment Management as the manager with Symvan as the Investment Advisor.
  • Diversification: Exposure to a ‘handful’ of companies – previous products/closings have had 4-6 investments.
  • Valuation: Initially companies will be unquoted. Validation prior to exit mainly through follow on investments.

Specific Issues

  • Fees: All charged via company except performance fee, though some may be taken in warrants to reduce cash flow strain. Performance fee of 20% of all gains.
  • Investment Process: A life-cycle approach to investment, looking at the plan for the next five years. Focus on deeper rather than wider, knowledge of companies and management.

Risks

  • Target returns: The target return is around £1.60 for each £1 invested, which is appropriate for a higher risk product.
  • Risk Mitigation: The Symvan approach is one of ‘deeper rather than wider’, with a strong focus on management.