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Why Invest

Positives

  • Strategy:  A generalist that will focus on areas in which the investment team has particular expertise.

Issues

  • Track record:  Given Vala’s short history, the track record so far is limited with no exits.

The Investment Manager

Positives

  • Team: The Investment Committee has a broad range of entrepreneurial experience and a successful track record prior to Vala of building and exiting companies.

Issues

  • Key man risk: Jasper Smith is the key person for Vala, although that risk may be reduced as the team grows.

Nuts & Bolts

  • Duration: The Fund is evergreen, with three closings per year, and investors receive a proportionate share of the next tranche of investments.
  • Diversification: The manager aims to provide six to ten investments for each investor, with no more than 20% in one company.
  • Valuation: Mixture of last transaction and internal valuation.

Fees

  • Fees: A very simple fee structure, with no AMC and only an initial fee charged
    to the investee company plus the performance fee, with the aim of focusing Vala on exits.
  • Performance fee: Charged at 20% on aggregate returns over 100% of subscription.

Risks

  • Target returns: The target return of doubling capital after fees suggests a
    medium- to high-risk investment strategy.
  • Companies: Supplying risk capital to early-stage companies, with a mix of pre-
    and post-revenue investments. There will be a spread of company returns as the successful ones will do very well, but those who fail may do so completely.

 

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