Symvan Capital (Fund)

Symvan Technology SEIS Fund & EIS Fund

27 Jun 2016 / Tax enhanced research

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

Why Invest?

Positives

Strategy: Exposure to a portfolio of early startup 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: All its funds to date have Amersham Fund 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 investment

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.

Risk

  • 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.