EIS Magazine - Yearbook - 2016/17

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CONTENTS CHAPTER • 1 Foreword

Mark Brownridge, Director General of EISA

Introduction

Paul Wilson, Chairman of IFA Publications and Chair of EIS Magazine Working groups on Policy and Communications

Looking Beyond Brexit

Michael Wilson, EIS Investment Overview

CHAPTER • 2 Thought Leadership

Cyrus Investments

SyndicateRoom

Hardman & Co.

Worth Capital

Deepbridge Capital

Downing

Par Equity CHAPTER • 3 Investment Spotlight

Blackfinch

Seneca Partners

Gizmo Films

Mercia Fund Management

Worth Capital

Deepbridge Capital

GrowthInvest

SyndicateRoom

Time Investments

Par Equity

Guinness Asset Management

Mercia Fund Management

Blackfinch

Ingenious

Oxford Capital

Deepbridge Capital

CHAPTER • 4 Enhanced Focus

SyndicateRoom CHAPTER • 5 EISA Members’ Directory

CHAPTER • 6 Open Offers

Telephone: +44 (0)117 9532 003 Editor-in-Chief: Michael Wilson editor@ifamagazine.com City Editor: Neil Martin neil.martin@ifamagazine.com Commissioning Editor: Michelle McGagh Publishing director: Alex Sullivan alex.sullivan@ifamagazine.com Design: Fanatic Design www.fanaticdesign.co.uk

EIS Magazine is published by IFA Magazine Publications Limited, The Tobacco Factory, Loft 3, Bristol BS3 1TF Full subscription details and eligibility criteria are available at www.eismagazine.com ©2016. All rights reserved.

EIS Magazine is for professional advisers only.

Full subscription details and eligibility criteria are available at www.eismagazine.com EIS Magazine is a trademark of IFA Magazine Publications Limited. No part of this publication may be reproduced or stored in any printed or electronic retrieval system without prior permission. All material has been carefully checked for accuracy, but no responsibility can be accepted for inaccuracies, independent research and where necessary legal advice should be sought before acting on any information contained in this publication.

FOREWORD

Well, what a year it has been! We’ve voted to leave the EU and have seen a paradigm shift in our political makeup.

Within EIS Association (EISA), we have also seen plenty of change and writing this foreword gives me a chance to thank my predecessor Sarah Wadham for her hard and inspirational work as Director General over the past three years.

challenge to the industry is to highlight those companies who have benefitted and succeeded from EIS funding and champion them to as wide an audience as possible, but particularly to MPs and to government. With this support, we can continue to convince government of the positive return they receive from their investment in EIS socially, politically and economically.

Three months into my tenure as Director General I have used the time to talk to as many people involved in the industry as possible to canvass views and get feedback on all things EIS, and I find the industry in a positive frame of mind despite the uncertainties that swirl around us. We are clearly entering a time when Britain will be in a state of flux following the referendum decision back in June but I’m a passionate believer that it will be small companies that drive Britain forward and deliver us the growth and prosperity that we will surely need.

The 2016/17 EIS Yearbook is once again a highly valuable EIS resource and I’m delighted to have been asked to write the foreword. At EISA, we continue to see overwhelming interest in EIS from all sides; small companies looking to raise equity finance that they otherwise struggle to access, an increasing number of diverse providers keen to enter the market, investors looking for exciting investment opportunities within a taxadvantaged environment and financial planners who wish to present their clients with an investment that combines tax planning with positive returns.

However, those small companies can only deliver that growth if they have access to the equity funding they desperately need to start, build and grow and that’s where EIS has a significant contribution to make. At a recent meeting with Chief Secretary to the Treasury David Gauke, it was refreshing to hear how supportive he was of EIS and SEIS and this should give everyone involved in EIS great hope for its future wellbeing. My

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EIS Yearbook 2016/17

As I sign off, I’d like to reach out to financial planners and let them know that EISA will be focusing strongly on engaging with them over the coming months to help them discover new opportunities for how they can embed EIS into their recommendations. Watch this space.

Mark Brownridge Director General, EIS Association

The Blackfinch Asset Focused EIS Portfolios allow investors to access asset-backed trading activities that provide a degree of capital preservation and risk mitigation.

Our EIS portfolios are a discretionary managed service which means that we select the investee companies on behalf of the investor according to our investment mandate. First and foremost, we will only invest into companies that have been granted Advance Assurance from HMRC, providing comfort to the investor that they qualify for the valuable EIS tax reliefs.

C A L L 016 8 4 57 1 2 5 5 O R V I S I T WWW. BL ACKFI NC H.CO M

INTRODUCTION

In the new economic and political environment, where Brexit has become a certainty, the stage is set for unprecedented levels of support for British industry, which will be one of the engines of future prosperity.

Since the 1980s the UK government has supported fledgling high-risk startups and their expansion through State Aid, but from 1994 it has favoured the Enterprise Investment Scheme (EIS) as its preferred mechanism for investing in the country’s newest business ventures. In effect UK Plc has been a co-investor alongside your clients, with the government using the tax system to channel its support. The government’s continued support for over 20 years reflects the excellent return, not just for investors, but for wider society.

In the past few years there has been a lot of media focus on ‘tax breaks for the wealthy’ and there is a danger that investors may misunderstand the reason for the investment as being tax driven, when in fact the underlying investment and potential for returns are the real driver. The tax relief is in effect a direct grant to the enterprise, not the investor.

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EIS Yearbook 2016/17

This yearbook sets out everything you need to know about EIS; who is who, how it works and how the risks are managed through investment selection, management and exit strategies.

With many clients excited about crowdfunding, it is more important than ever to guide clients to the best investments and funds available, and delegating the picking of winning companies has never been as important to returns as in this sector, which is why it is best entrusted to fund management specialists who not only pick winners, but nurture and mentor them through their development to exit.

Keep up-to-date throughout the year with EIS Magazine which will be with you bi-monthly with regular updates and information on the best current schemes available, or you can visit www.EISmagazine.com for live updates.

Paul Wilson Chairman of IFA Publications and Chair of EIS Magazine Working Groups on Policy and Communication

LOOKING BEYOND BREXIT Welcome to EIS Magazine’s annual Yearbook for 2016/17. And what a year it’s been. According to the EIS Association’s recent letter to Prime Minister Theresa May, EIS has trebled its fundraising levels since 2011, with a record £1.6 billion being raised during 2014/15, the most recent year for which we have firm data. And that in turn brings the total of equity funding raised since 1994 to more than £14 billion, benefiting some 25,000 SMEs. Plus another £400 million or so per annum for venture capital trusts.

2011

£5.3mn

encounters between HMRC and the so-called ‘Icebreaker’ providers which had allegedly set up creative arts EIS schemes designed primarily to avoid tax, and which - in almost all cases, as it turned out – had no commercial purpose at all.

of the Brexit vote. A great many of the constraints on EIS and VCT investment (such as the exclusion of alternative energy projects) have stemmed from Brussels. Would this not be an excellent moment to consider their removal?

This sort of adverse publicity has done the mainstream EIS sector no good at all. Many parliamentarians, EISA’s supporters claim, have a pretty pitiful level of knowledge about EIS and VCT - a survey by the Entrepreneurs Network had highlighted that at least a third of MPs had never even heard

“Much of the complexity imposed on these schemes by Brussels needs to be removed to enable these growing companies to make their full contribution to a vibrant UK economy.

Lifting most or all of these restrictions would be a quick, simple and decisive step in the right direction to getting

2014/15

£1.6bn

That’s a colossal result, whichever way you look at it. But (have you noticed that there’s always a ‘but’?), the association has been on the warpath to make sure that its voice gets heard against the increasing din from a turbulent parliamentary scene in the aftermath of the Brexit vote. Mrs May might have dumped George Osborne from the chancellorship, but it’s not yet entirely clear that his successor Philip Hammond has been giving enough of an ear to the concerns of the industry.

That needs to change.

Crackdown, Crackdown..

Instead, all we seem to be getting from the Cabinet at present is the need to ‘crack down’ on rogue operators, and to punish any adviser who proposes a tax mitigation scheme that HMRC might belatedly consider to have been aggressive avoidance. That wouldn’t have been such a cause for concern (after all, 99% of EIS schemes are utterly open and straightforward), if only it hadn’t been for a series of bruising and very public high court

£14 BILLION SINCE 1994

of EIS or SEIS. And too many of those who had heard of them had acquired a negative view. That’s not a good starting point.

The Fightback Starts Here By the time you read this yearbook, we should have got the first outlines of the new report that Mrs May has commissioned into the subject of aggressive avoidance - and I want to stress that every financial adviser has an interest in keeping up with this one, and in making his or her voice heard. All the talk in high places about hefty fines for advisers, solicitors and accountants who propose what are being (sometimes very loosely) defined as aggressive schemes needs to be met with a very determined insistence that considerations of tax efficiency are part and parcel of what financial advisers do every day of their lives.

Meanwhile, the EISA’s letter to the Prime Minister makes another very valid point in the aftermath

the UK economy performing, postBrexit. Such a move would be welcomed by SMEs across the UK and would also serve as a positive demonstration that Brexit can bring benefits, by unshackling business from EU-imposed regulation that hinders their growth.” - EISA The EISA’s letter reasserts that “the vibrancy and dynamism of SMEs is one of the UK’s strongest economic assets, and [that] the importance of EIS and SEIS in incentivising the provision of equity investment for SMEs is likely to be ever more important as we go forward. EIS is about empowering entrepreneurial companies by providing the investment for them to prosper and grow.” That means ending some of the present funding constraints at this pivotal point in history.

Michael Wilson Editor in Chief

EIS Yearbook 2016/17

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THOUGHT LEADERSHIP

THE CREATION OF AN EISÂ INVESTMENT Peter Schwabach, Managing Partner at Cyrus Investment Management, investigates how companies are picked for investment and how fund managers work with them 10

EIS Yearbook 2016/17

Thought Leadership

The summer of 2016 will no doubt be remembered as the hottest summer on record but for EIS investment managers, more pertinently, it will be remembered as a historically difficult one as managers chased overworked part-time HMRC case officers to find out whether their applications for advanced assurance - under the new Finance Act rules of November 2015 - would be approved.

In the heat of that process - critical to both Investors, IFAs and managers – it was no doubt easy to forget that the EIS investments themselves and not just the certificates, were the priority. Setting aside the requirement to secure EIS approval for investments our job is all about investing our clients’ money wisely and delivering a meaningful return after three years.

One of the unintended (or perhaps) intended consequences of the 2015 Finance Act is that it radically transformed the role of many EIS managers from astute buyers of EIS eligible assets into that of entrepreneurial managers of multiple small businesses.

Furthermore, by introducing a seven year age limit on businesses where a manager could take a majority stake and restricting investments into businesses older than seven years into a specific new product or market, the focus of the manager shifted still further into the heart of the business by requiring a manager to determine which product or market the business should now focus on.

At Cyrus Investment Management (CIM), where we have been investing EIS funds into existing British engineering companies since 2013 with the specific aim of doubling their size and value in three years, the change of focus from the macro to the micro (as introduced by the Finance Act) has made little impact on our modus operandi. Managing SMEs is the core competence of our investment team and it is the direct engagement with the management and workforce of the different businesses we invest that remains our focus.

As venture capitalists our particular brief is to invest in “best in class”. British engineering businesses which have long term orders with blue chip clients in growth industries such as aerospace, security and defence. We only invest in businesses that have exclusive or difficult to obtain “moat” accreditations, ie. industry accreditations granting them

the right to make products in strategically sensitive and technically advanced industries such as nuclear, aerospace or defence, thereby restricting the number of national and international competitors.

We then monitor over a hundred different aspects of a potential investment which vendors are then put to proof in an extensive due diligence process, which CIM funds itself.

Historically we will only invest in 5% of all the businesses we consider for investment.

What happens next?

Having made an investment we will then introduce into each business a centralised financial reporting system, a uniform quality control system, a sophisticated monitoring system that enables us to understand the actual cost of each product and component made and monitor the individual efficiency of each machinist and engineer.

To these measures can be added the improvement in the financing terms on pre-existing machinery or new equipment, the improved terms negotiated with suppliers where raw materials are bought not just for one business but on behalf of all of them. Add to that the standard renegotiation of leases on existing premises or alternatively the signing of leases on new premises.

Notwithstanding the fact that many of our businesses are fully state of the art with robotic machinery operating 24 hours a day – and machines whose costs run into the hundreds of thousands of pounds - we regard our most valuable assets as the people who manage and operate them. They, and not the machines, are the ones who can grow the business and particular attention is paid to hiring or replacing them.

Our aim at the end of the three year period is to have a complimentary group of companies, centrally managed that can be sold as a single going concern at a premium to trade buyers or institutional investors.

Post Brexit – we remain very confident as the particular sector of the market we service – precision engineering – has seen a growth in orders as a result in the fall in the pound.

Let’s hope next summer is a lot cooler!

EIS Yearbook 2016/17

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WHAT THE EIS MARKET NEEDS NOW: MORE RESEARCH Advisers need to ensure their research into EIS is robust but are being held back by a lack of information, says Keith Hiscock, Chief Executive of Hardman & Co 12

EIS Yearbook 2016/17

EIS has gone from strength to strength in funding growth companies and has had a material impact on employment.

Unfortunately, the analysis and research of this asset class has not matured in step and remains inadequate for advisers and investors.

Many are kidding themselves if they think that ‘research’, which is little more than ‘cut and paste’ from a manager’s website or advertorial copy, is going to be deemed adequate. This research gap is holding EIS back from being considered a mainstream asset class.

Thought Leadership

Let’s not be shy here. EIS has been a great success in funding growth companies and creating jobs. Since inception in 1993/94 £14 billion has been raised, and recent years have seen an acceleration. The latest data from the HMRC demonstrates this: EIS has also been a big hit with investors. Recent years have seen a sharp uptick in the number of subscriptions with more than 135,000 being made in 2014/15, the latest tax year for which HMRC has published. Clearly, increasing restrictions on high income earners making provision for their pension is one of the drivers, as is the growing evidence that EIS can deliver very satisfactory returns. These suggest a bright future for advisers that understand the field well.

EIS Subscriptions: Number 14,000

0 1993

2015 Source: HMRC, Hardman & Co

Funds rasied through EIS £m 1800

0 1993

2015 All companies raising funds

Source: HMRC, Ipsos MORI, Hardman & Co

EIS Yearbook 2016/17

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But the EIS world has an image problem. It is seen as risky and overly focused on tax benefits. Many commentators are, in particular, concerned about the poor quality of research in this investment class. Even the Financial Conduct Authority (FCA) has fired a warning shot. In a paper published in February, the regulatory body found that many advisory firms ‘demonstrated inconsistent and insufficient research’ and that the poor quality of research and due diligence across many investment products is a root cause of sub-standard results for consumers.

Too often advisers and investors focus on the tax benefits and not the underlying investment. They plunge into EIS companies and schemes without understanding the investment they are making. Not surprisingly they can unwittingly get caught in risky ventures and the EIS world gets a bad name.

The mindset of the EIS world can perhaps be gauged by the language used. Many participants talk of ‘tax-efficient’ investing; in fact, one ‘research’ house even includes that phrase in its name. Another party uses the term ‘tax shelter’ as part of its report title. Both terms imply that the key (and perhaps only) driver to making an investment in an EIS product should be driving down an individual’s tax charge, rather than understanding the investment case. Hardman & Co deliberately uses the phrase ‘tax-enhanced’ – we believe that the tax benefits from EIS investing should be an extra return on the investment, not the main reason to make it. Another acceptable term is ‘tax advantaged’, which the HMRC and some participants use.

The industry’s encouragement to advisers and investors to have a mindset focused on saving tax is demonstrated by evidence from Google. A search for the term ‘EIS+Tax Relief’ returns 115,000 results, compared with 5,070 for ‘EIS+Opportunity’ and a mere 2,740 for ‘EIS+Growth’.

HMRC recently commissioned a report looking at which tax benefits were important to EIS investors. The table is below.

To be fair, the survey sought to explore attitudes to tax, so there wasn’t an option for investment that respondents could tick. However, qualitative interviews which followed up the survey showed that some investors, at least, had considerations other than tax: • For some investors ‘loss aversion was a particularly important factor in decision making’ • Some investments would have been made without the tax relief because they were driven by entrepreneurial (e.g. a former businessman wanting to help start-ups in his old industry) or philanthropic reasons • Some felt that being part of a group of EIS investors gave comfort about the business potential There is research available on EIS to advisers and investors.

Unfortunately, it often falls short of what would be considered acceptable in other asset classes. For example, much research fails to consider: • The past performance of a management team • Performance attribution – i.e. did one lucky investment make up for 19 disastrous ones?

• Risk analysis. The FCA paper comments that firms ‘should not rely on the provider’s opinion, for example, on the investment’s risk level’ – cut and paste won’t do • The real fee structure, which can include hidden charges, such as a member of the manager’s team receiving payment from an investee company as a director • The qualities of the underlying investments – not surprising since much of the work is not conducted by investment analysts, but by writers with an accounting background

How important would you rate each of the following in your decision to invest through the Enterprise Investment Scheme?

50

0 Any tax advantaged element

Income Tax relief

Capital Gains Tax exemption

% of all EIS investors saying essential 14

EIS Magazine · Yearbook 2016/17

Capital Gains Tax deferral

Loss relief

% of solo EIS investors

Inheritance Tax relief

Flexibility of the scheme

% of syndicate EIS investors

Thought Leadership

In fact, much of what is loosely called ‘research’ in the EIS space does nothing more than combine factual ‘cut and paste’ from the manager’s or company’s website with the manager’s response to the research house’s questionnaire. This is not research – it is advertorial copy. It might save the adviser or investor the bother of reading the manager’s investment memorandum, but it doesn’t add value and should not be considered research by professional investors.

Some research providers have attempted to produce a scoring system. The aim is commendable – to provide a simple measure for advisers and investors. Unfortunately, the scores are entirely subjective, opaque and unverifiable.

The assessment is divided into sections such as ‘Objectives/Business Model’, ‘Management Team’ and ‘Deal Flow/ Exit’; a score is given for each section and a total calculated. But there are two glaring issues here.

First, there is no publicly available explanation as to how the score is determined in each section what justifies 17/20 for one fund in one section versus 18/20 for another fund?

Second, how is the weighting for each category determined? For example, one provider’s report weights the ‘Track Record’ at 40% of the score, whilst ‘Management Team/Deal Flow/ Exit’ all together only merit 20%.

We are not suggesting these sector scores and weights are wrong, our point is that, without disclosure of the underlying template for scoring and weighting, the outsider can only assume that the numbers are plucked out of thin air. The idea of scoring may be laudable, but the execution is specious. Thus advisers are kidding themselves if they think they have carried out due diligence by considering these scores – if prompted by the FCA how would they explain how they are derived?

Some advisers seek to overcome the lack of analysis by advising clients to diversify – don’t put all your eggs in one individual company or fund. Such diversification should certainly be part of an investment strategy, but it

should not be a substitute for research on each fund or company – how can you be sure that diversification does not mean you end up with ten duds instead of one?

In response to this need for rigorous analysis Hardman & Co entered the EIS research market less than a year ago at the behest of a number of the participants.

Hardman is an FCA registered firm, which already has a long roster of EIS clients. Our aim is to bring the analytical rigour for which we are known in other asset classes to the tax-enhanced world. The firm has a 20-year track record of writing independent research on quoted companies, with market capitalisations ranging from the smallest to £750 million.

It also carries out due diligence for investment banks, corporate finance boutiques, and private equity houses.

It is asked to conduct investment case evaluations for major global businesses, family offices, sovereign wealth funds and act as expert witness in complex court cases where the valuation of a business is critical.

We have a team of investment analysts, most with more than 20 years’ experience of understanding the fundamentals of their industries and businesses and discerning the investment case and risks. Indeed, our media analyst, Derek Terrington, was cited by the Financial Times in its 2006 article ‘A catalogue of great analyst notes of our time’ for his so-called ‘crap circular’ regarding the float of “Robert Maxwell’s Mirror Group” empire where his advice was ‘Cannot Recommend A Purchase’.

As the demand for EIS grows, there has never been a more critical time for EIS advisers and investors to raise their game in research and understanding.

Only by doing so can the EIS industry throw off the accusation that it is all about risk, tax benefit and poor return.

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EIS Magazine · Yearbook 2016/17

Thought Leadership

RISK EQUALS REWARD: UNDERSTANDING TAXEFFICIENT INVESTMENTS EIS can bring rewards for clients but advisers must be clear about the risks associated with alternative investments, says Ian Warwick, Managing Partner at Deepbridge Capital

According to HMRC data, during the 2014/15 tax year the amount raised by UK companies seeking funding via EIS was a record £1.7 billion. Much of this was raised via financial advisers seeking tax-efficient investment opportunities for clients that either have a specific tax need or have an interest in investing in small UK businesses.

In previous years, the growth in appeal of EIS investments has often been attributed to the rise of

renewable energy within this space and the asset-backed, subsidised nature of such projects offering ‘capital preservation.’ With the Chancellor removing subsidised renewable energy projects from EIS eligibility it is good to see that there remains growing appetite for provision of equity funding to UK SMEs via EIS. However, it is important that advisers and investors understand the unique risks associated with such investments.

Yearbook 2016/17 · www.eismagazine.com

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Investment risk Investment managers take varying approaches to mitigating investment risk. Most of us agree that a diversified portfolio approach to investing is one way to mitigate risk, but I would temper this by arguing that diversification across too many companies restricts the ability to gain significant returns from what should always be considered a high risk investment. My team’s approach to mitigating risk is to invest only in specific sectors where they have knowledge and experience and to take a proactive hands-on management approach with the investee companies to ensure that they are growing as expected. This is how we believe we have the best chance of delivering real growth to investors whilst mitigating investment risk.

As with any investment, the value of shares can go down as well as up. Investors should be aware that investment in smaller unlisted companies carries with it a high degree of inherent risk regardless of any steps taken to attempt to mitigate that risk.

Investment risk may be mitigated in a number of ways, with some providers advocating investment in ‘asset-backed’ projects where there is a physical asset within the investee company that could potentially be sold if the worst came to the worst and an investee company was to fail. If looking at such a proposition, it should be assessed as to what the secondary market and the value of the underlying asset would realistically be if the company was no longer trading. For example, a storage company may be deemed to be ‘asset-backed’ as the storage facility is a physical asset. However, if the storage company were to fail then the value of the prefab building without any trading company is likely to be minimal. There are other ‘assets’ within companies that could be considered, for example if considering a technology based investment then attention should be given to the importance the manager attributes to intellectual property as this could actually be a valuable asset in its own right.

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EIS Magazine · Yearbook 2016/17

With loss relief available under EIS it could be argued that a focus on asset-backed opportunities is unnecessary. Loss relief is available for EIS shares which are disposed of at any time at a loss (after taking into account EIS income tax relief which is retained). The loss could potentially be set against the investor’s capital gains or his/her income in the year of disposal or the previous tax year. For losses offset against income, the net effect is to limit the investment exposure to as much as 38.5p in the £1, depending on the investor’s marginal rate of income tax, if the shares become totally worthless. Alternatively the losses could be relieved against capital gains at the prevailing rate of 18% or 28%.

Liquidity EIS shares are usually held in unlisted companies, from which investors might only be able to exit via a refinancing or company sale. EIS investments should be considered as a medium-term or long-term investment and investors are unlikely to have access to their capital during the investment period. Having a pre-arranged exit is not permissible under EIS rules and investors should be wary of any provider suggesting the guarantee of an exit.

EIS providers should be exit focused and, by understanding the investment rationale and experience of the investment management team, investors should be able to ascertain how focused they are on generating real exits for real returns. I’m confident most investors would rather wait a few months for an optimum exit rather than a ‘churn’ of an EIS investment at three years to just claim the tax reliefs.

Tax risk It is expected that the new Chancellor will continue the work of his predecessor and scrutinise EIS opportunities which do not adhere to the original spirit of EIS, i.e. seeking to create jobs or innovation. Two things that should be considered on this point are that propositions which do not fund companies that are seeking to generate jobs or innovation will likely cease to be eligible for new EIS funding and there is the chance that the HMRC, with their increased

Thought Leadership

budget and appetite for challenging tax mitigation, may retrospectively review companies that have raised funds via EIS. Investors should seriously question any EIS proposition where it is marketed as having reduced or little investment risk. Such propositions are likely to be at risk of HMRC review in future and it could be argued that the ‘challenge risk’ with such propositions is markedly higher than an investment where the underlying investee companies are genuinely seeking growth and the creation of jobs or innovation.

Deal flow risk By the nature of what we do as tax-efficient investment managers, we face a constant balancing act. We have to ensure that we have enough investment inflow to fulfil the funding requirements of our investee companies, yet we also have to ensure that we have enough capacity to satisfy investor demand. We have very stringent investment criteria so identifying and then investing in companies which meet these criteria can be a challenge.

We see this balancing act as being a fundamental part of our business and our raison d’être. Working closely with academia, science parks, funding specialists, government supported agencies, networks of innovators and independent advisers there are always a number of companies looking for funding via EIS and SEIS. This is especially true in our focal sectors of technology and life sciences, the trick for us is finding those that meeting our stringent criteria.

Potential investors should be checking with their proposed investment managers as to where their funds will be deployed. Understanding how they source their investee companies and knowing their investment criteria will help advisers and investors avoid a scenario where funds are invested in any old business just because it qualifies for EIS or SEIS. It should be assessed as to whether the investee companies are appropriately matched with the skillset of the manager.

This issue can sometimes be highlighted towards the end of the tax year as advisers rush to invest prior to tax year end. My team’s objective is therefore to ensure that an investor in March can be confident that their money will be invested in companies in which we wholeheartedly believe in, just as they would at any other time of the year. Unfortunately this philosophy isn’t shared by all in our industry and those who merely invest to claim tax reliefs may not have the same desire to find genuine growth companies. As our investment team is predominantly made up of experienced business builders and entrepreneurial minded individuals, we are fortunate to be referred numerous companies from our extensive network of innovators who all understand our expectations.

Investing in EIS propositions is not for everybody but anybody considering such an investment should clearly understand the additional risks associated with such propositions.

As one adviser recently said to me: “All EIS investing is high risk and if a client is suitable for such an investment, and is of appropriate net-worth, then they should want to make real returns from their EIS.” This is not the case for everyone but I understand this adviser’s sentiment that as only a small part of a client’s portfolio, why shouldn’t they seek to make real returns from their EIS investment?

Tax-efficient investments bring with them different risks to your traditional mainstream investment products.

Therefore, advisers should take a moment to understand where their client’s money is being invested and understand the rationale behind the investment.

Yearbook 2016/17 · www.eismagazine.com

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Advisers need to understand why EIS exists – and the asset class it’s intended to stimulate – to understand which clients are likely to benefit from EIS investments.

WHICH CLIENTS WOULD BENEFIT FROM EIS? Andrew Castell, Partner at Par Equity, identifies why EIS is beneficial and which advisory clients it is suitable for

As other tax-advantaged long-term saving opportunities are chipped away at, EIS stands out.

There’s no such thing as a free lunch, though, especially where HMRC is concerned, so their continuing commitment to such an apparently generous incentive tells us something. Advisers need to understand why EIS exists – and the asset class it’s intended to stimulate – to understand which clients are likely to benefit from EIS investments.

What and why is EIS? Venture capital involves taking an equity stake in businesses with high growth potential. Returns can be many times the amount invested but, if things don’t go well, capital is genuinely at risk.

According to PitchBook, which analyses the venture capital market, recent returns have been especially strong

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– median internal rates of return (IRR) for venture funds have increased from 4.4% for the 2005 vintage to 16.4% for 2011, with a drop to 12.8% for the 2012 vintage.

The top quartile of funds in the 2010 vintage has posted a 32.5% IRR (sufficient to grow £1 to £5.41 over six years).

Despite this, and for a variety of reasons, the UK has struggled with a capital shortage in relation to venture.

Although originating in the dotcom bubble at the end of the last century, this capital shortage continues to be a problem for early stage companies.

EIS is one of HMRC’s two venture capital schemes aimed at solving this problem. A powerful bundle of tax reliefs, it’s aimed at stimulating investment in growth companies, encouraging investors by giving them the chance to mitigate their investment risk. In this way, EIS ups the flow of capital into high growth potential companies and the high-value jobs they create. The government is content

Thought Leadership

to see taxes foregone through EIS because the benefits (company formations and job creation) outweighs the costs to the Exchequer.

According to PitchBook’s research, the median fund TVPI (the ratio of fund value to paid-in capital) is above breakeven in each of the 12 years they looked at (2001 – 2012, as the most recent funds aren’t yet producing meaningful data), with 1.17x the worst year and 1.56x the best. Adjusting for EIS, this would equate to a median TVPI in the best year of 2.23x and 1.67x in the worst. Better yet for EIS investors, gains are usually tax-free, while losses can be offset against income tax.

EIS should therefore be seen for what it is, a tax incentive to encourage investors to provide capital to a vital part of our economy, by allowing those investors the opportunity to mitigate investment risk and improve their investment returns as a result.

Which clients might be interested in EIS investments?

Venture capital has a low level of correlation to major asset classes such as listed equities and bonds. As a result, it sits well within a portfolio, with a positive effect on expected returns at little or no increase in the overall portfolio risk.

A client with an investment portfolio of £1 million could potentially accommodate an allocation to venture of £100,000 without materially increasing the overall portfolio risk – but with the benefit of EIS, this decision becomes a lot easier.

If that £100,000 allocation were to be built up at a rate of £20,000 a year, the client would be reducing their annual income tax bill by as much as £9,000, as well as deferring capital gains tax (CGT) of £20,000 a year (£5,600 of CGT deferred).

One way of looking at this is that it greatly improves the taxefficiency of the client’s overall portfolio, which is likely to give rise to an ongoing flow of taxable income and capital gains. Put another way, the £100,000 allocation to venture might only cost £70,000. The cash cost to a client building up the venture part of their portfolio over several years can fall further with the potential to benefit from exit proceeds before the portfolio has been fully built up.

A client with an interest in venture capital can therefore achieve his aims at a significantly lower cost - as the analysis of TVPI ratios illustrates, venture capital returns can be materially enhanced by EIS, with additional advantages in the form of loss relief and CGT relief. Other reliefs, such as rollover relief and IHT relief, can drive significant further value for clients with specific tax objectives, for example if they: • are paying high marginal rates of income tax; • have CGT liabilities they wish to manage; • are looking at estate planning; or • are at or approaching the limit of their pension allowance.

Which clients are EIS investments suitable for?

EIS is a complex scheme and increasingly subject to detailed anti-abuse provisions. For these reasons, it’s not guaranteed that EIS relief will remain available across an entire portfolio. It’s therefore important that clients are comfortable with the underlying investment first and see EIS as an extra (and potentially considerable) benefit, rather than fixating on tax.

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Thought Leadership

As venture capital is a long term asset class, with a high level of investment risk at an individual company level, it’s for investors who understand that losses will happen within their overall portfolio and that they may often have to wait patiently for the good investments to come through. An allocation to venture should be from money that the client isn’t relying on in the short to medium term.

Even within the venture portfolio, diversification is key.

It’s wise to diversify over time as well as over sectors and sub-sectors. Clients should therefore be able to commit to investing most, if not all, years over a period of several years. If things go well, exits should start coming through within that horizon, providing the cashflow, if required, to fund the next five years – and so on. If you consider that doubling one’s money over five years pre-tax represents an almost three-times multiple post-tax, it’s easy to see how an ongoing investment programme can become self-financing.

a sophisticated grasp of business and investment

In considering suitability, therefore, it’s likely that the client will have: • a sophisticated grasp of business and investment; • the appetite to assume risk; and • a long term investment horizon.

Particularly, the client will need to be prepared for early losses within the venture capital portfolio, often coming through before the profits.

How are advisers using EIS investments?

Investors can choose from a variety of routes if they want to access EIS investments. As well as funds, they may look at single company EIS opportunities, whether on a rifleshot basis, as part of a portfolio service, or through equity crowdfunding sites.

the appetite to assume risk

However it’s done, the challenges of building a portfolio one company at a time are not to be underestimated and few advisers have the expertise or indeed time to advise clients on the suitability of single company EIS investments.

As a result, advisers rightly tend to focus on EIS funds.

Advisers have been quick to appreciate the value of EIS funds as a tax planning tool, but unfortunately this has too often been reflected in a desire for structured products with supposedly low levels of investment risk.

With a growing realisation in the market that EIS is getting back to its roots as a measure specific to growth companies, its effectiveness as a tax-planning tool remains, but advisers are having to think a bit harder about portfolio theory. Considered as a stand-alone investment, venture capital is risky. Considered as part of a well-diversified portfolio, venture capital investment in the form of subscriptions to EIS funds has little or no effect on overall risk and can materially enhance portfolio returns on a posttax basis – even before the returns from the venture capital investments are factored in.

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a long term investment horizon

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EIS AND THE HUNT FOR RETURNS Diversification is key to steady returns, but how you diversify is just as important, says James Sore, Chief Investment Officer at SyndicateRoom Interest rates are at a historic low, UK gilts yields continue to fall, and property – both commercial and residential – is under pressure. In this unstable environment, more and more investors are beginning to look elsewhere to grow their finances.

To find it, they’re going to have to move up the risk curve for a chance at higher returns meaning the percentage of portfolios that include EIS and VCT investments and the weighting those investments hold within these portfolios will only increase.

EIS investments are often uncorrelated to main market movements, at least on a day-to-day basis. They also come with significant risk-reducing tax reliefs and high potential returns, and as such offer an attractive investment opportunity for investors.

Fintech companies have been breaking down barriers to entry and increasing the sophistication of access to retail investors, and financial advisers are also becoming more comfortable with the inclusion of EIS deals in portfolios. But what’s the best way to navigate this investment landscape and what should you think about when selecting an investment strategy?

The finance free lunch The Nobel Prize-winning economist Harry Markowitz famously once said: ‘Diversification is the only free lunch in finance’ It’s a wonderfully satisfying soundbite, but what exactly does he mean and how should we interpret this statement in order to inform investment decisions and maximise returns?

Building a broad portfolio of investments of different stages, liquidity, sectors, sizes and types reduces the chances of having highly correlated investments within the portfolio, where macro changes such as housing market changes, unemployment or general market performance can affect all investments in the same way. Having an array of different types of investments also allows for a balance of risk and returns which should be in line with your overall investment risk profile. The higher-risk end of your portfolio should include some earlier-stage equity investment exposure, especially if you are not approaching retirement.

Simply diversifying by buying a smaller stake in a number of deals can potentially reduce your risk exposure compared to

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Thought Leadership

The more you know about the business, the closer you can get to accurately assessing its intrinsic value and not its stock price, which is often a very poor mechanism for valuing a business

SOURCE

PRICE

NEGOTIATE

INVEST

Yearbook 2016/17 ¡ www.eismagazine.com

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Investors should always be searching for ways to improve their odds of success. This can be achieved in two ways: 1. Train to become a proficient investor and select the very best deals yourself, or 2. Follow professional investors or investment strategies and invest alongside them through the various products available.

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Thought Leadership

investing larger amounts in a smaller number of companies; that much is obvious. The problem is that to diversify, as an isolated investment strategy, is not all that is needed.

What is important is to also make sure the underlying investments are of the highest quality.

Buying a diverse selection of rotten vegetables doesn’t magically make them fresh again.

Investors should always be searching for ways to improve their odds of success. This can be achieved in two ways: 1. Train to become a proficient investor and select the very best deals yourself, or 2. Follow professional investors or investment strategies and invest alongside them through the various products available.

Going it alone Deciding to become an angel investor is not a decision to be taken lightly, but for those that become proficient there are massive potential returns to be made.

Going it alone means you will source, price, negotiate and invest in the companies you chose. Berkshire Hathaway’s Vice Chairman, and arguably one of history’s most successful investors, Charlie Munger, stresses the importance of knowing the businesses you are considering investing in – really knowing them, the market, their competitors, their plans and achievements made to date.

The more you know about the business, the closer you can get to accurately assessing its intrinsic value and not its stock price, which is often a very poor mechanism for valuing a business.

If you then discover an investment that is trading at a significant discount to its intrinsic value (this can be the public or private price being offered), you can decide to invest. This discount between the market (offer) price and intrinsic value is essential as it gives you a margin of safety for the inevitable ups and downs in the price of that investment.

Follow the leader These two pieces of investing advice do somehow seem to be competing requirements: ‘Diversify your portfolio’ and ‘know your sector’ Investing in private companies is difficult. There is a huge level of choice on offer, and to really ‘know’ the vast array of sectors required to build that diversification takes a huge amount of time, dedication and, well, knowledge.

You wouldn’t be alone in asking; how can I diversify outside of my knowledge base confidently enough to invest? Well, just as Aristotle, Confucius and Socrates all believed, real knowledge is knowing the extent of one’s ignorance; it is vital to know the limits of your knowledge and invest accordingly.

If you wish to invest in discrete investments but do not have the time, knowledge or connections to source, price, negotiate and invest in the opportunities yourself, you can invest alongside other angel investors in a syndicate.

However, care should be taken as to how best to gain exposure to these investment opportunities. One option is to invest alongside angels on an investor-led® platform such as SyndicateRoom, which offers you the same share class and price as those experienced investors leading the rounds.

If, however, you are looking to gain exposure to a market but do not feel you have the knowledge, time and interest to select and build your own portfolio, investment funds offer a compelling option.

Funds offer investors access to a wide range of investments focused on delivering risk-adjusted returns.

Whether actively or passively managed, all funds seek to diversify by holding many tens of investments in a portfolio.

Exchange traded funds (ETFs) have become extremely popular because they are transparent, offer significant levels of diversification, have low fees and provide retail investors access – something that was previously reserved for the very wealthy but is now accessible to near all. ETFs offer a diverse selection and construction of investments from a single investment into the fund. Active funds aim to beat the market by generating returns that exceed overall market returns.

When deciding whether to choose a passive or active managed fund, returns should always be compared after fees and expenses. When this is performed, passive funds often outperform actively managed money. Charlie Munger recommends having a selection of long-term ETFs, a passive product, and leaving them alone, as the practice of frequent rebalancing can erode returns due to the fees associated.

Options for passive investors to diversify in the early-stage space are quite limited. It’s possible to invest in an actively managed EIS fund, but such funds usually only invest in between five and eight investments each and are generally single sector. One option would be to invest in a number of such active EIS funds, but the minimum investment per fund often exceeds £25,000, sometimes climbing as high as £100,000, which means you would have to commit hundreds of thousands each year.

I find this lack of diversification and low portfolio size very strange. Yes, these high-risk investments have the potential to yield high returns, if low levels of liquidity, and yet the number of investments per fund is lower and spans fewer sectors which increases your risk exposure.

It’s this counter-intuitive behaviour that drove us to build the first passive EIS fund, Fund Twenty8™.

Fund Twenty8™ offers early-stage investors the benefits of an ETF-style approach to passive fund management, multi-sector exposure and a portfolio approach where we guarantee at least 28 investments per fund. Each investment is led by an angel, syndicate or professional investment fund and Fund Twenty8™ invests alongside them, benefiting from their knowledge and experience.

You can find out more information about Fund Twenty8™ and other products we offer at www.syndicateroom.com

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FROM SMALL ACORNS MIGHTY OAKS GROW: WHY SEIS MATTERS Matthew Cushen, Co-founder of Worth Capital, looks at the rise of SEIS and the returns on offer

Equity investing in early stage start-up businesses is becoming an increasingly common component of a diversified portfolio. The generous tax reliefs available from the Seed Enterprise Investment Scheme (SEIS) are the most oft quoted benefit of seed investing. But this is only one part of the equation.

There is also emerging data to illustrate a healthy return on investment and unlike many financial products, this is one that clients get excited about - following the fortunes of ‘their’ startups and sharing stories about investing in real businesses.

The big picture The normal rules of business have changed and it’s nimble entrepreneurs that are challenging the old order and being the catalyst for our disruptive age. It’s start-ups that are creating new consumer behaviours and leading a recovering economy.

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Thought Leadership

Start-ups are usually unencumbered by the deeply entrenched thinking and bureaucratic shackles that stifle large businesses. They have recently started to enjoy some of the advantages that used to only come with scale, for example: • The cost of entry for a start-up is rapidly decreasing – a retailer can create an online shop window for almost nothing, and an app can be built for less than £5,000.

• Social media allows a new entrepreneur to interact with their consumer, grow a brand and make it personal and relevant to a precise audience, all at low cost.

• Entrepreneurs now can think globally from day one – selling in multiple markets and sourcing from multiple markets.

50%

growth are created by ‘high growth small businesses’ that make up less than 1% of UK businesses and make up less than 3% of the UK economy.

This growth is not just the preserve of London and the South East. It is creating opportunities across the UK – with nearly three in five of these growth businesses based beyond London and the South East, with 70% of turnover being out of London.

These are just some reasons that the UK government has been supportive of small business and start-ups. One of Theresa May’s earliest speeches on becoming Prime Minster was to emphasise her government’s commitment to supporting and listening to smaller businesses.

Part of the government’s support, for the last couple of decades, has been to create tax incentives for investors that support early stage seed investing.

“I want to build an economy that works for all, and that means working with, and listening to, smaller firms.”

Theresa May, Prime Minister

Expected returns on investments made since January 2012.

0% <1x

1-5x

6-10x

11-15x

16-20x

>20x

Large businesses now routinely buy start-ups as a preferred route to get hold of new technology, products and services. Whilst we might immediately think of Google’s venture arm, many older ‘legacy’ businesses, such as Kelloggs, Campbells and Amex, also now have venture funds. One of the most active businesses is Unilever and in the last few months their deals have ranged from putting in £500,000 alongside a crowdfunding round for the on-demand beauty service Blow, to spending $1 billion buying out Dollar Shave Club.

The Seed Enterprise Investment Scheme

Driving growth

In the 2014/15 tax year, 2,185 companies raised £168 million through SEIS, growth from 1,995 companies and £148 million in funding in 2013/14.

The need for fast growing start-ups to contribute to the overall health of our UK economy is heightened by Brexit created uncertainty.

The Octopus High Growth Small Business Report 2015 finds that one in three new jobs and 20% of economic

The EIS was set up in 1994 and continued to be supported through Labour governments. It has since been made more attractive by the Conservative government, and has established itself as a part of tax legislation that neither of the main parties would be likely to compromise.

SEIS, established in 2012, is an extension of EIS and offers even more generous reliefs as an incentive for investors in very early stage businesses.

But it can’t be a growing source of funding without a growing and enthusiastic body of investors. SEIS is becoming an established part of a sophisticated

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investor’s portfolio and a growing number of IFAs and wealth managers are including SEIS funds in their recommendations to clients. A survey by the EIS Association found that 14% of advisers already recommended SEIS investments and 61% of all advisers expected their use of SEIS (and EIS) to increase over the next year.

that while it may be high risk, a portfolio can still deliver healthy returns.

Tax advantages for investors

• 45% of angels reported that their investee businesses showed ‘high growth’ while 64% had investments showing ‘reasonable growth’.

Often it is the tax reliefs that first catch the eye for potential SEIS investors - reliefs that reduce risks and increase return on investment.

Within some criteria, a company can raise £150,000 in funding covered by SEIS reliefs.

An individual investor can make multiple SEIS investments up to £100,000 per annum, qualifying for: • 50% income tax relief: claimed back through selfassessment in the tax year following the investment or ‘carried back’ and claimed immediately against the previous tax year • 100% capital gains exemption: gains upon exit, after a three year qualifying period, are tax free • 50% capital gain re-investment relief: capital gains may be reinvested in SEIS to achieve re-investment relief, restricted to half of the gains realised • loss relief: should a company fail the net investment (total minus the income tax relief) is multiplied by your tax rate and reclaimed from income tax • 100% inheritance tax relief: provided that investments are held at the time of death and have been held for two years For an investor with capital gains and a higher rate income tax liability, the total available reliefs can cover 84% of the investment - only 16% of their investment is at risk HMRC publishes comprehensive guides to the rules around SEIS on its website.

Healthy returns Reliefs should not be a reason to invest or to recommend an investment. A much more compelling rationale are the potential returns that are available. A recent report illustrated the returns from seed investing showing

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The Enterprise Research Centre (ERC), in conjunction with the UK Business Angels Association, published A Nation of Angels, in January 2015 - research completed through direct interviews with 403 business angels and 28 angel syndicates representing 8,000 angels. It found:

• 60% of angels reported that they have experienced a positive (full or partial) exit since their first investment.

• 79% of them said they would re-invest their gains in further small business investment opportunities – only 7% said they would not.

It found that angels reported a lower rate of low returns and a higher rate of expected higher returns than in previous research – showing confidence in the market and the performance of their seed investments.

When asked about the growth status of their current portfolio, angels reported that 19% of their investee businesses showed ‘high growth’ while 34% of their investments showed ‘reasonable growth’. (The authors of the study did not define ‘high growth’ and ‘reasonable growth’ but left them subjective.)

When asked about their expectations of their returns from their portfolio of investments made since January 2012, investors expected that 76% of their investments would yield a positive return, of which 19% of their investments would yield a six to 10 times return and 13% of their investments would yield more than 10 times return.

Real growth stories When have you ever heard someone discussing their pension at a dinner party? Or explaining their ISA to their grandkids? While many investment products can struggle to capture the imagination, investing in early stage businesses creates pride and a rich source of stories. Following a business as it grows (the triumphs and disasters) is part of the joy for investors. It is also a valuable way for advisers to stay genuinely engaged with their clients.

Thought Leadership

Considerations for reducing risk & increasing returns There are several ways to make SEIS investments, for example as an individual business angel or as a consortium of angels; through crowdfunding or through subscribing to a fund. Useful questions when considering SEIS investments are: • how can I construct a portfolio of several investments across companies and sectors?

60%

60% of angels reported that they have experienced a positive (full or partial) exit since their first investment.

• how can I get access to many potential investments then efficiently distil the best choices?

• how can the selection criteria increase the proportion of successful businesses and reduce failures?

• how realistic are the valuations?

• how are the start-ups being helped to reduce risk, accelerate growth and achieve maximum value?

At Worth Capital we have been investing in seed stage start-ups well before the advent of SEIS. Our experience in answering these questions has led us to a model which we believe ‘stacks the odds’ of seed investing. We have created the Start-Up Series - a competition format from which every month we distil the brightest of the UKs entrepreneurs with the smartest ideas. Our partners, Amersham Investment Management, are fund managers for the Start-Up Series SEIS Fund One which will invest in the winning businesses.

We’d love to explain more and share our passion for seed investing. Please get in touch or visit our website www.worthcapital.co.uk

Reliefs should not be a reason to invest or to recommend an investment.

A much more compelling rationale are the potential returns that are available

79%

79% of them said they would re-invest their gains in further small business investment opportunities – only 7% said they would not.

64%

45%

45% of angels reported that their investee businesses showed ‘high growth’ while 64% had investments showing ‘reasonable growth’.

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The market has continued to grow in 2016 and we believe it is now too big for advisers to ignore, which begs the question – is there a place for intermediaries to give advice and possibly add value to client portfolios via crowdfunding?

THE CROWDFUNDING PHENOMENON: IS IT ADVISABLE? Crowdfunding is a fast-growing sector.

Julia Groves, Head of Crowdfunding at Downing, believes advisers shouldn’t be missing out

When Nesta published the UK Alternative Finance Industry Report earlier this year, it detailed some impressive statistics. During 2015, the crowdfunding market grew to £3.2 billion in size, involving more people, projects and businesses in funding and fundraising - the popularity of joining ‘the crowd’ appeared infectious. The number of funders in the UK reached 1.09 million with some 254,721 individuals, projects, not-for-profits and businesses raising finance via online alternative finance platforms. The market has continued to grow in 2016 and we believe it is now too big for advisers to ignore, which begs the question – is there a place for intermediaries to give advice and possibly add value to client portfolios via crowdfunding?

Not all crowdfunding is the same Crowdfunding typically finances projects or businesses

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by raising contributions from direct investors via an online platform. In return, investors can receive shares in a company or earn interest. It is a very diverse market ranging from equity-based crowdfunding, which is similar to angel investing, all the way through to secured bonds, which are possibly transferable and asset-backed. Much of the UK crowdfunding market has now moved towards debt-based crowdfunding, lending to more mature businesses with established revenue streams; in 2015, the vast majority of the UK market, 88% was debt free, and almost £1.49 billion was loaned to UK SMEs via peer-to–peer (P2P) business lending.

As a long-standing supporter of UK businesses, a natural progression for Downing has been to move into the debt-based crowdfunding market. We launched our

Thought Leadership

crowdfunding platform in March, offering bonds secured on a business’ existing, operational assets. Over the six months since March, we have launched a further six bonds.

We are delighted to have raised over £12 million to support the growth of smaller UK businesses, predominantly in the renewable energy space. To date the bonds issued have offered between 5% and 7% returns over 1-2 year terms and have attracted more than 700 investors.

Key considerations around crowdfunding investment There is no such thing as a ‘typical’ crowdfunding investor given the scope of the sector and the variation in the risks associated with each specific crowdfunding raise.

There is a world of difference between an investment in an early stage business that has yet to prove it can

generate revenue (never mind profit) and an investment in mature, established or asset-backed businesses. With any fundraise, there are some key questions that need to be answered: Where is the money raised going – is it going to a person or a company?

• How well established is the company, and what is the risk associated with the actual end asset?

• What type of vehicle is being used – is it equity or a bond, secured or unsecured, junior or senior debt?

• And what happens if things go wrong?

Finally, the platform it sits on and what that platform does to protect investors needs to be explored. Whether they EIS Yearbook 2016/17

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are acting as security trustees or agents needs to be established, along with the level of due diligence that has been carried out on the company.

Can I advise on Crowd Bonds?

For example, each bond on the Downing Crowd platform goes through Downing’s full due diligence process, drawing on over 20 years of investment management experience.

A full Offer Document is issued for each fundraise, outlining the risk and returns and independent analysis is available through an in:review report.

Does your firm hold FCA permissions for arranging deals in investments OR making arrangements with a view to transactions in investments?

So, is crowdfunding advisable?

Does your firm have the following permissions:

Despite the compelling attraction of certain types of crowdfunding, it has not traditionally been considered advisable for a number of reasons, not least because of scepticism of the quality of the offers/valuations, issues with regulation and permissions.

However, we are seeing an increasing number of enquiries from advisers interested in the opportunities for their clients, which suggests the tide is turning on how intermediaries view of this area of the alternative finance market.

We believe that the key challenges for advisers are evaluating each client’s overall portfolio and appetite for risk, understanding the crowdfunding opportunities available and the levels of risk involved, and then assessing whether the returns are sufficiently acceptable for the level of risk taken.

Debt-based crowdfunding is regulated by the FCA, which gives a further layer of investor protection.

So as long as firms have the correct permissions to advise on these investments and advisers have the appropriate qualifications (located to the right), they are permitted to give advice on these opportunities.

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YES

Advising on investments Customer type: Retail Investment type: Debenture

YES Do you hold the right qualification e.g/ Cil Certificate in Securities Advice and Dealing?

NO

NO

YES ADVISED

INTRODUCER ONLY

In this case, you can recommend a bond or selection of bonds to your clients

In this case, you can introduce clients to our platform but they must select their own bonds

Thought Leadership

A valuable addition to a balanced portfolio Severe fluctuations in financial markets following the global financial crisis, and more recently following the Brexit vote, have resulted in a low interest rate environment that shows no sign of improving in the short term. This has had a significant influence on how investors and providers consider different investment solutions. Diversification within a balanced portfolio is the holy grail for most investors – so a valuable addition to their mainstream holdings could be an investment in an unlisted, mature company with established assets and cash flows. As such, an uncorrelated portfolio might contain investments that are unlisted and therefore not exposed directly to the highs and lows of the stock market.

Legislation and widening parameters of the IFISA and pension freedoms The new Innovative Finance ISA (IFISA), introduced in April this year, offers an opportunity for advisers to introduce clients to the diversification benefits of crowdfunding.

Draft legislation on widening the parameters of the new IFISA has been published revealing that, from November, investors will be able to put some of their ISA allowance into bonds and other debt securities made through P2P and crowdfunding sites.

Another boost to this sector is expected to come from SIPPs as more retirees take advantage of pension freedoms. Additionally, new regulations capping high-networth individuals’ pensions contributions will mean that investors look for other vehicles to improve their returns and manage their tax relief.

Investors’ ability to place this type of bond within these tax wrappers may prove attractive to income hungry investors.

Conclusion With interest rates at all-time lows, a number of clients will be unhappy with the returns they’re getting from their savings. As people seek better returns and companies become more creative in how they raise money, we believe the debt-based crowdfunding proposition should continue to grow. Crowdfunding may give financial advisers an opportunity to advise on a portion of their portfolio that they don’t already. This may become increasingly attractive when an investment is made through a SIPP or ISA wrapper. Clients may not have the time or the ability to differentiate between the myriad of crowd offers – advisers have a valuable role to play in guiding their clients in this new and innovative market.

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INVESTMENT SPOTLIGHT

The Blackfinch Media Enterprise Investment Schemes (EIS) and Seed EIS (SEIS) offer investors a variety of government backed tax reliefs to help reduce their tax burden.

Blackfinch provide investments that deliver predictability and have a focus on capital preservation balanced with growth. Our EIS and SEIS portfolios continue this strategy, to offer compelling investment opportunities that combine a capital preservation focus whilst also taking advantage of the valuable tax reliefs available.

C A L L 016 8 4 57 1 25 5 O R V I S I T WWW. BLACK FI NC H.COM

Investment Spotlight

A BIRD’S EYE VIEW OF BLACKFINCH INVESTMENTS Neil Martin talks to Blackfinch Investments’ Chief Executive Richard Cook about EIS investment opportunities, education and that inevitable Brexit question

Those who know their natural history will know the relevance of the black finch and why this particular EIS specialist is so called: the black finch found fame after Charles Darwin studied the bird and his findings became the basis of his ‘survival of the fittest’ theory.

Malvern-based Blackfinch was conceptualised on the birth date of Darwin and the firm is a keen believer of the evolutionary theory that, according to Blackfinch Chief Executive Richard Cook, reflects the company’s ability to adapt to changes in the markets.

Blackfinch currently has two EIS portfolios available to clients that benefit from asset-backing and solid income streams, while targeting capital preservation and growth.

The Blackfinch Media EIS Portfolio focuses on music publishing and television distribution. The music publishing companies own music copyrights for a portfolio of music scores for films and television programmes. The television distribution companies sell the broadcast rights for television programmes on behalf of producers and derive income from the sale of those programmes to international broadcasters who license those rights.

Second is the Blackfinch Asset Focused EIS Portfolio which offers investors the opportunity to benefit from the firm’s understanding of both residential and commercial asset-backed construction. Blackfinch Asset Focused EIS constructs residential housing in areas of high demand across the UK along with commercial construction of crematoriums, retirement villages, nursing homes and student accommodation.

Educating clients As to how advisers can educate their clients about the investment opportunities in EIS, Cook said: “It is of primary

importance that the client is assured that any EIS chosen has been given approval, known as advance assurance,

by HMRC. This ensures that the investee company shares qualify for the tax reliefs available.

“Advisers should also educate clients to understand the balance between the investment risk taken, the growth opportunities, as well as the tax reliefs available. In addition, the adviser should make the client aware of how those risks are being mitigated by the provider of the EIS and to ensure that the mitigation being undertaken is within allowable parameters in accordance with HMRC rules.

“Advisers should encourage investment into EIS for appropriate clients as part of a diversified portfolio and be able to explain fully where the clients’ money is being invested.”

Educating clients in difficult market conditions, such as post-Brexit, can be a challenge but Cook is upbeat about the prospects for EIS. “We are optimistic that the current demand for EIS will continue into the long-term. With the decrease in EU subsidies there will be a requirement to continue to support the growth and development of smaller companies in the UK economy. It may very well be the case that the tax incentives will become even more attractive to encourage wider investment but we feel that there will be more emphasis on EIS assets providing real growth and development in order to support the UK economy.”

The ‘survival of the fittest’ theory is not the worst philosophy for an EIS firm and Cook will no doubt be hoping his firm will be part of the investment evolutionary process for some time to come.

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Maxine Peake stars in ‘Funny Cow’ with Martin Freeman

David Tennant in Gizmo Films’ ‘Mad To Be Normal’

GIZMO FILMS HAS BEEN MAKING FILMS SINCE 1997 AND NOW SPECIALISES IN IDENTIFYING, FINANCING AND CO-PRODUCING THE VERY BEST OF UK INDEPENDENT FEATURE FILMS. We only select and work with projects that meet strict criteria for offering investor value and the prospect of good returns: › Well known and saleable cast, experienced producers and director › Realistic budgets – we will only back films where the budget is significantly lower than the sales estimates › Sales Agent attached and preferably distributor confirmed with a major international distribution company such as Lions Gate and Entertainment One › SEIS and EIS available › UK tax credit qualifying – cutting production costs by 20% › Equity investors positioned as high as possible in recoupment schedule

We aim to build long term relationships with investors and ensure full communication, strict financial compliance and lower risks. We encourage direct investor involvement such as set visits, exclusive screenings and premiere invites.

In 2016 we completed ‘Mad To Be Normal’ with David Tennant, Elisabeth Moss, Michael Gambon and Gabriel Byrne and have a number of projects at different stages of production.

In Autumn 2016 we launched ‘Funny Cow’, starring Martin Freeman, Maxine Peake, Stephen Graham and Vic Reeves a comedy drama set in the working men’s clubs cabaret circuit in the 1970s and 80s.

We always have a number of exciting projects open for both SEIS and EIS so get in touch for more information email info@gizmofilms.com or visit our website www.gizmofilms.com

Investment Spotlight

ACTION! UK FILM AND EIS WORKING TOGETHER Neil Martin talks to Gizmo Film Productions about the reliance of the UK film industry on SEIS and EIS and how it makes a difference to the economy

Gizmo Films Productions was founded in 1986 and is an award winning UK-based film production company.

It produces a wide range of films, from biographical and factual documentaries through to fiction.

Director Peter Dunphy joined in 2012, coming from a corporate finance background where he managed funding processes, and is responsible for finance, financial management and investor relations at Gizmo.

Dunphy is keen to point out the contribution the film industry makes to the UK economy.

“The industry employs thousands of people throughout the UK – creating an engine for creative output for writers, directors, camera crew, photographers and actors, but also many thousands of make-up and costume specialists, electricians, carpenters, caterers and drivers,” he said.

Dunphy added that successive governments have recognised the importance of this industry in both the economy and the cultural life of the nation, and that a special ‘producer’s tax relief’ represents a rare government subsidy to the industry, which is worth typically 20% of production costs spent in the UK. The UK independent film industry relies heavily on SEIS and EIS funds, explained Dunphy. By their nature major film projects are start-ups and most projects qualify for SEIS and EIS, though there is a need for any special purpose vehicle (SPV) companies established to develop and produce films to demonstrate growth potential and a good prospect of longevity.

However, an SPV ostensibly established to make just one film before winding up will not now obtain HMRC clearance.

When it comes to educating their clients about the SEIS and EIS investment opportunities in film, Dunphy highlighted the perks beyond investment potential.

“Investors are often keen to include within their portfolio a stake in this fascinating and exciting industry. As an investor you can watch filming on set, attend red carpet premieres and maybe act as an extra. Few other EIS investments can

rival these for perks,” he said.

“But investors need to know that they are not making a donation to a worthy creative industry – they also want to avoid risk and maximise returns. Investment in any form of media or any start-up is, of course, relatively high risk, but that said examples where investors made massive gains - Paranormal Activity and The King’s Speech - as well as some well publicised complete flops, are unhelpful as they are atypical.”

Film schemes are not immune to bad press and Dunphy said “there have been attempts by a small number of companies to promote or achieve ‘too good to believe’ returns for investors through opaque and complex investment schemes”.

It is because of these few bad apples that Dunphy said education about the role of EIS backing film is key.

“My first challenge is often to reassure investors that EIS is not some wildly exotic tax avoidance scheme, but a long established and HMRC-promoted scheme used successfully by tens of thousands of businesses across many industries,” he said.

“My experience in the staffing sector helps as my very successful businesses in this sector were underpinned

by EIS. Investors should also look carefully at the financial characteristics of every production and the track record of the production team.”

When looking at film investment, advisers should ensure they consider a number of key characteristics and at Gizmo Films, they ensure projects pass a number of tests: • will the film qualify for the UK tax credit?

• where do EIS equity investors sit in the recoupment ‘waterfall’?

• is the production budget reasonable for a film with this cast and genre?

• who is making the film?

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Investment Spotlight

EIS AND THE PIVOTAL ROLE OF ADVICE When it comes to being entrepreneurial, Paul Soanes, Co-founder of Worth Capital has been there and got the t-shirt. He explains to Neil Martin the importance of EIS and how clients are encouraging advisers to get on board

Worth Capital is a fund managed by Amersham Investment Management that has a slightly different approach from many other EIS specialists.

Co-founder of Worth Capital Paul Soanes said: “We have two target sets of investors. One is sophisticated investors, who are savvy on tax reliefs and the risks associated with start-up capital, and secondly, advisers.

“We are a relatively new business and we think advisers are pivotal to the long-term health and success of our business. Mainly because we in the SEIS and EIS world are slightly under-represented with advisers; there’s been low hanging fruit in terms of investment opportunities over the years, but now we’re in this lower interest rate environment, and SEIS and EIS funds can offer a much better return on investment potentially.”

He said there are a number of good EIS fund managers already in operation who have launched a series of funds over the past five years but “we feel that there is room for innovation and that requires education on our part and the advisers part”.

Soanes left university in 1994 and used his entrepreneurial spirit to found iD, growing it into a top 10 UK experiential marketing agency. From there he established Brandspace, Europe’s largest promotional space media agency and returned initial backers 17 times their original investment within five years. As a highly experienced seed investor, he has invested in over 25 businesses since 2008.

He believes that the fact the four founders of Worth are successful entrepreneurs, who have made numerous SEIS and EIS investments, makes a difference.

“It’s an edge. How much of an edge we don’t know at this stage, but, effectively this is all about stock picking; you pick the best investments, of which there are probably, in the SEIS and EIS world, at any point in time, a couple of thousand businesses and funds raising money.

“We run a series of competitions that gives us a trawl of that overall market. It’s definitely an appeal that we’ve built and sold businesses ourselves; we’ve gone through all that pain, it does give you a bit of an edge in being able to spot that kind of X-factor in an entrepreneur.”

Worth Capital invests purely in consumer businesses: the products and services people buy and the way that they buy them and Soanes believes EIS investment can help diversify a client’s portfolio.

“Numbers from the EIS Association show that many more advisers are suggesting alternative investments,” he said. “This is hardly surprising given yields on savings are at record lows and pensions are being squeezed. With the generous tax reliefs available through SEIS and EIS becoming better understood by clients, it will be the client asking for them to be in consideration if not offered first by the adviser.”

Soanes believes the role of the adviser is pivotal, and that there are a number of ways they can educate their clients about investment opportunities in EIS. He thinks the role of the adviser is to educate clients on the landscape of EIS and SEIS funds and secondly, to give them a broad understanding of what investment classes are available; from relatively steady EIS funds providing growth capital to more established businesses, through to SEIS funds investing in very young businesses.

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Make It Your Business

Toil. Hard graft. Late nights.

The sign of a business that means business. Weâ&#x20AC;&#x2122;ve been doing just that as we announce our transition from Seed EIS Platform to GrowthInvest.

We are making it easier for Advisers to become more active in the tax efficient investments arena.

We have upgraded our unique investment platform and added tools which allow you to provide better service to your clients. We will give you the confidence and a compliant, intuitive framework to extend your business practices.

Our platform is set to be a game-changer in the Alternative Finance sector, which is itself about to enjoy a bright new dawn.

Make it your business, before others make it theirs.

Find out more at growthinvest.com

Investment Spotlight

SEED EIS PLATFORM BLOSSOMS INTO GROWTHINVEST Daniel Rodwell of Seed EIS explains to Neil Martin why the platform is relaunching under a new name

Seed EIS Platform is relaunching as GrowthInvest as it grows its offering to include a number of regulated managed portfolios.

The platform, which was launched in 2012, provides advisers and their clients with access to high-growth EIS and SEIS single company deals. However, the platform is increasing its product offering to include a number of regulated managed portfolios.

Since the launch, the platform has facilitated 48 investment rounds into 41 different qualifying EIS and SEIS companies.

Rodwell said the platform can help drive entrepreneurial investment in the post-Brexit economy, whether directly into companies or through managed products, and that it can provide advisers with the tools to access and manage tax efficient investments for clients.

“We place the adviser at the heart of what we do, avoiding disintermediation via direct-to-consumer offerings, and educating unfamiliar advisers on the use and appropriateness of tax efficient investment,” he said.

Daniel Rodwell, Managing Director and Chairman of the investment committee of Seed EIS Platform, said the platform remains committed to the idea that EIS, VCT and BPR portfolios provide essential capital to the SMEs that are driving the UK economy.

For GrowthInvest, adviser engagement comes in many forms; including ongoing educational seminars, both in-house and regional, and additional events in collaboration with trusted industry and media partners. It has also expanded its adviser-focused client services team and regularly meets advisers at events. It has LGBR Capital, experts in the adviser marketplace, as its distributors.

“We’re changing the product and name, having listened to the market, in anticipation of what’s going to be a busy period for EIS and the general tax investment space,” he said.

Rodwell is aware that to remain competitive, GrowthInvest has to move ahead with innovative products and services, mainly to meet the continual additional stream of new investment opportunities.

“Seed EIS was very descriptive in the early days, but rather restrictive now because our offering now is very different.

We offer access to investment companies, EIS, inheritance tax services, and focus on giving advisers access to the entire tax space. Indeed, access to everything in the unlisted environment going forward.”

Rodwell is confident of the future of EIS, but said there needs to be a focus on a number of issues.

The platform remains the only consolidated platform for advisers in the tax efficient space, said Rodwell, with control of all alternative investments under one adviser dashboard and access to a wide range of single company offers.

“There also has to be wider use of the product amongst the adviser community due to pension restrictions, greater due diligence and enhanced tools assisting advisers and their clients. We’d also welcome a greater visibility on the results of the scheme, the success stories and how these have had a positive impact on the UK economy.”

It will now offer advisers and their clients access to a number of unique SEIS, EIS and BPR deals and the ‘asset transfer’ function on the platform enables advisers to bring on board legacy client assets.

“There has to be a shift in perception of the scheme from a tax-led product to an investment-led product, one which co-invests. EIS should not just be seen as a way of sheltering tax,” he said.

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Helping you support your clients’ needs At TIME, our mission is to deliver attractive investment solutions that bring peace of mind.

To do this we have established a professional culture that revolves around our clients, with our teams going above and beyond to provide an exceptional experience. Our original IHT service boasts a 21 year track record of successfully achieving IHT savings for our investors and we now have solutions for both personal and corporate investment. We also manage two innovative long income property funds, with our original fund continuing a 23 year run of delivering consistent, inflation beating returns and continuous liquidity.

About TIME £550 million assets under management

Nationwide distribution team of 20

50 staff and growing

In house team of 16 investment specialists

EIS

IHT TIME:EIS focuses on investing in asset backed businesses which offer suitable return profiles for our investors. Our opportunity in dry bulk shipping has successfully raised and deployed capital for tranche 1 and tranche 2 is now open for investment.

TIME:Advance is a discretionary management service that allows investors to access BPR to mitigate their IHT liabilities. Targeting 3.5%, the focus is on investing in asset backed businesses such as secured lending, renewable energy and self-storage.

If you would like to find out more about any of our assets or investment solutions, please contact us on 020 7391 4747 questions@time-investments.com time-investments.com This notice is aimed at financial advisers only and is not intended for retail clients.

TIME Investments is a trading name of Alpha Real Property Investment Advisers LLP and is authorised and regulated by the Financial Conduct Authority.

Investment Spotlight

ADVISERS: THE LIFEBLOOD OF EIS TIME Investments Partner Simon Housden explains to Neil Martin why advisers are so important to the business

TIME Investments doesn’t accept direct investments into its funds, meaning that advisers are key to the success of the business.

Simon Housden, Partner at TIME Investments and also Sales and Marketing Director, said the fund manager is never in competition with advisers.

“Advisers are our lifeblood; one thing that’s perhaps unique about TIME is we only take advised business, we don’t take business direct from clients, we’re never in competition like that,” he said.

A team of 20 people at the company spend their time talking to advisers, meeting them face-to-face, presenting to them and their clients, all with the aim of up-skilling them in terms of EIS. For Housden, the key is rather than trying to constantly enlarge their market share, is to help grow the overall size of the market.

“The way to do that, is to provide education for advisers, to make sure that they are really well informed about how EIS works and what goes in the space,” he said. “So we spend all our time presenting at events, conferences, seeing advisory businesses face-to-face, just to make sure that

everyone is up to speed and do our bit to help them have the confidence in the product.”

TIME is a part of the Alpha Real Capital group, a global co-investing fund manager with over £1 billion of assets under management.

TIME has a simple mission, to try and create transparent investment opportunities that bring long-lasting peace of mind to investors and their financial advisers by seeking stable performance and consistent liquidity.

“Our teams regularly go above and beyond to create an experience that we’re proud of. We don’t take any unnecessary risks including the use of gearing and are recognised for our exceptional customer service,” said Housden.

Housden said that EIS is still a stable environment post-Brexit.

“The only negatives are things like legislation risk. Also, the problem we have is that you wait for every Budget and see what’s announced, and you never quite know what you’ve got to work with. There’s been a bit of a habit over the years of tinkering with the rules which makes our life more complicated.”

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Investment Spotlight

INVESTING IN THE NORTHERN POWERHOUSE Ian Battersby talks to Neil Martin about how Seneca Partners is helping regional companies get the funds they need

Politicians may endlessly debate the Northern Powerhouse but Seneca Partners is already helping businesses in the Midlands and the North get the investment they need.

Seneca was founded in 2010 and brought together a team of finance professionals with extensive contact networks and deal flow.

and August 2016. The firm’s portfolio now contains over 28 companies funded across 45 investment rounds. A total of 13 of those investments are listed on the AIM market and a number are approaching exit.

Crucially, the firm is not tied to the tax-year calendar, but sees EIS investing as an on-going activity.

Ian Battersby, Business Development Director at Seneca Partners, has a background in wealth management and corporate banking, helped to co-found the company and is now responsible for product and strategy development as well as relationships with wealth managers and institutions.

“We are all-year round investors, we are not really driven by tax year-end, we look at each investment on its merits and each investment thesis has to stand on its own two feet. Ultimately, our belief is that this is about generating good investment outcomes for clients, rather than timely production of EIS certificates,” said Battersby.

The relationships Seneca has built in a number of cities around the country are pivotal to the company’s success.

“Ours is an evergreen discretionary service, so what that really means is that we’re giving investors four to six investments per tranche, per investment year. So in our world the notion of clients subscribing in February and March, and still expecting four to six investments before the 5 April is really not happening.”

“With a presence in Manchester, Liverpool, Leeds and Birmingham, we are well represented in the UK’s SME heartlands,” said Battersby.

“The established, trusted and high-quality contact network of the Seneca Partners team, which includes fellow professionals, funders, investors and SMEs themselves, is integral in our ability to source the most interesting and compelling investment opportunities. The combination of our network and our location ensures that our EIS investment deal flow remains buoyant.”

Battersby said the company will complete around 20 EIS investment deals per year and will also remain closely involved in the development of the businesses.

“We also remain close to and advise on the strategic development of our investee companies throughout the investment period and on the options available to realise each investment once the three year period has ended,” he said.

Seneca is a prolific deal maker, with its EIS Portfolio Service completing 11 deals totalling £13 million between January

Battersby is confident that the SME sector will continue to perform and is cautiously optimistic about the future of Seneca’s investments in light of the EU referendum and when Article 50 is triggered.

“We are confident that they will deliver against the target return of £1.60 to £1.80 per £1 invested excluding any benefits of tax reliefs. Our EIS exits to date have achieved target including a partial exit for investors which returned a 10.8x multiple on 80% of their investment,” he said.

When it comes to Brexit, Battersby added that “we are clearly mindful of the challenges ahead but we are ready to tackle them as and when. For now, we have our heads down keeping our deals in sharp focus and we are seeing plenty of opportunities. That’s maybe the effect of the Northern Powerhouse, but we stick to what we’re good at and stay away from the things we don’t know anything about”.

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mercia fund management

Merciaâ&#x20AC;&#x2122;s Growth Fund is now OPEN

commercialising tomorrowâ&#x20AC;&#x2122;s technologies

Providing tax efficient EIS & SEIS funds across a range of technology sectors in which deep expertise is held.

Find out more at www.merciafund.co.uk or call 0330 223 1430 A wholly-owned subsidiary of

mercia technologies

Mercia Fund Management Limited, Forward House, 17 High Street, Henley-in-Arden, Warwickshire, B95 5AA, is authorised and regulated by the Financial Cunduct Authority FRN: 524856 in the United Kingdom.

Investment Spotlight

THE INSIDE TRACK ON HIGH-TECH EIS INVESTMENTS Paul Mattick of Mercia Fund Management explains why having expert investment directors is a must in high technology areas

Mercia Fund Management doesn’t just invest in companies, it gets under the skin of them by recruiting people who are specialists in a number of fields.

Growth Funds therefore enables individuals to get close to a diversified portfolio within rapidly growing sectors with significant potential for high returns.”

The company specialises in a broad range of high technology sectors, from digital and digital entertainment to software, life sciences and bio-sciences and through to electronics, materials, manufacturing and engineering.

Mercia runs a broad engagement policy with advisers, helping them educate their clients about the investment opportunities in EIS. In some cases, they provide CPDqualifying events for networks, so that an adviser can fully comprehend the complexities of EIS investments.

Former Olympic rower and entrepreneur Paul Mattick is in charge of the company’s private fundraising team and oversees the performance of the tax-efficient funds, as well as managing the investor relations side of the business, working with investors and a growing network of advisers.

Mattick said that key to Mercia’s success is recruiting the right people from the industries the funds focus on.

“Mercia’s strategy is to recruit the top people from these industries, all of whom will have a track record of building and selling large companies, and who can leverage their extensive personal networks to help drive the growth of the portfolio,” he said.

“Investment directors of this calibre add considerable strategic value to early stage businesses and can make C-Level introductions (with high ranking executives), some of which can be the biggest companies in their market.”

As to how EIS investments can help diversify client portfolios, Mattick said: “The make-up of the portfolio is not one which is typically associated with investing, and so opens up exciting opportunities to support businesses at the leading edge of new technologies. Investing in Mercia’s

“EIS is not a simple area, but investing in a high performing EIS funds with low fees and several notable exits can provide significant value for an adviser’s clients. Advisers who provide services of this type to their clients are offering a premium service that provides added value in a crowded market,” said Mattick.

Nor does Mattick believe that Brexit has affected their portfolio companies significantly. Instead, he said, it is more likely to impact on the low-cost service industries.

It is their belief that current EU legislation is unlikely to change as the UK will aim to replicate similar legislation following Brexit.

“The most important sectors – including the high technology industries that EIS is designed to support – remain the same. Any other areas will be sequentially excluded by the government (as has been seen with solar and other asset-backed investments) so that tax efficient money is focused on areas that have the most impact on UK GDP.”

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Deepbridge is a different kind of investment provider.

With over 200 years of combined experience of investing in growing businesses; Deepbridge provides innovative investment opportunities, including investments in innovative technology companies, life sciences and asset-backed renewable energy projects.

01244 746000 www.deepbridgecapital.com Deepbridge House, Honeycomb East, Chester Business Park, Chester, CH4 9QN

Deepbridge Advisers Limited is an appointed representative of Sapia Partners LLP (â&#x20AC;&#x2DC;Sapiaâ&#x20AC;&#x2122;), a firm authorised and regulated by the Financial Conduct Authority (the FCA), with FCA registration number 550103. Deepbridge Advisers Limited registered office is at 5th floor, 55 King Street, Manchester M2 4LQ.

Investment Spotlight

DISRUPTING THE EIS SECTOR Ian Warwick of Deepbridge Capital is working with advisers to create innovative products and tells Neil Martin about disrupting the industry

Deepbridge Capital has set out to be a different type of investment manager, focusing on innovation and designing products with advisers and investors in mind.

and practical support Deepbridge can provide investee companies is also crucial to helping companies reach their potential.”

Ian Warwick, Chief Executive of Deepbridge Capital, already had success as an entrepreneur and has led both private and public companies, including the turnaround of several businesses.

For advisers, EIS investments are a great way to diversify portfolios and Warwick said there is increasing demand for alternative investments.

He wants to use his experience to help create new investments in highly specialised areas.

“We work closely with financial advisers and investors to design innovative products, ranging from investment in technology growth companies to asset-backed renewable energy projects,” he said.

“We also partner with innovative and committed management teams to help UK based companies realise their potential and become successful leadingedge businesses.”

For Warwick, EIS is not a tax-focused product but a yearround investment opportunity.

“We’re business builders; we drive business growth. Tax relief is an added bonus,” he said.

Deepbridge specialises in investing across three primary sectors: disruptive technology, life sciences, and renewable energy. It believes that it is crucial that the investment manager has suitable skillsets, sector expertise, and industry experience to understand and navigate the sector-specific routes to commercialisation and growth, to unlock investor returns.

“The UK has a history of innovation stretching over the last three hundred years, and retains its global position at the forefront of technological innovation.

Such innovation requires private equity funding as well as continued governmental support. In addition to funding, entrepreneurs and innovators often also require commercial experience to progress a great idea to commercial viability,” he said.

“Both the technology and life sciences sectors are heavily reliant on venture capital in order to undertake research, development and commercialisation. The management

“As long as a client has an appropriate attitude to risk and accepts the potential for capital loss, EIS investments can form an integral part of a well-balanced and diversified portfolio,” he said.

“With significant erosion of tax reliefs available for pension savings, there is an increasing appetite amongst financial advisers for other tax-efficient investment opportunities.”

He went on to say that with the EIS market maturing and becoming increasingly transparent, advisers have never been more empowered, had more product choice and more information regarding EIS investment opportunities.

For suitable investors seeking a longer term investment, EIS could be appealing as the investment risk is partly mitigated by the tax reliefs available and the growth potential of SME investments can often far exceed more later-stage mainstream opportunities. Therefore, he said, it is reasonable to suggest that EIS investing should be considered as part of a well-diversified portfolio and a wider financial plan.

Warwick also has clear views as to how advisers can educate their clients about the investment opportunities in EIS. “Tax planning is a fundamental component of any financial investment plan and consideration should be particularly given to where the client has a specific income tax liability, capital gain, or a potential IHT problem,” said Warwick.

“Where EIS investments may support a wider financial plan, the financial adviser should consider suitability and appropriateness of the advice beyond just whether an EIS proposition is suitable from a tax planning perspective. That is, advisers should also consider the underlying investment and the appropriateness for the individual client.”

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Fund Twenty8™ SPREAD YOUR RISK LARGE PORTFOLIO EIS FUND | MULTI-SECTOR EXPOSURE MANAGE RISK BY DIVERSIFYING | INVESTOR-LED™ FUNDING CLOSING DECEMBER 2016

twenty8@syndicateroom.com This is only directed at professional investors and should not be relied upon by retail investors. The value of investments may go down as well as up. Authorised and regulated by the Financial Conduct Authority (No. 613021). Registered office: 71 Regent Street, Cambridge CB2 1AB.

Investment Spotlight

DIVERSIFICATION IS THE KEY SyndicateRoom’s Gonçalo de Vasconcelos talks to Neil Martin about the innovative multi-sector fund the company has developed

Equity crowdfunding platform SyndicateRoom has created a multi-sector diversified fund to address two key issues in the EIS fund space.

outweighting the decline of others. Traditional EIS funds generally only invest in between five and eight investments per fund and usually focus on a single sector.”

The launch of the Fund Twenty8 aims to tackle the single sector exposure prevalent in the EIS space and a lack of a diversified portfolios.

The investment strategy is to provide an opportunity to invest alongside lead investors and target growth capital in companies that have certain key characteristics; including being pre-profit and being able to demonstrate strong and established management teams with proven business credentials, aiming to generate an IRR of 20%, or more; and, are EIS eligible at the time of investment.

Gonçalo de Vasconcelos, Co-Founder of SyndicateRoom, said the advantage of the fund is its commitment to investing across sectors.

“The fund opens up to our investors the opportunity to build a truly diversified portfolio, across more sectors and more companies – a minimum of 28 – than traditional funds, along with all the added incentive of EIS tax relief,” he said.

“Our launching of the fund was prompted by research from Intelligent Partnership and NESTA into early stage angel investing, which found that a minimum portfolio size of early stage businesses should consist of at least 28 companies – so as to most effectively spread risk and maximise one’s chances of one investment’s return

Risk is mitigated by building a sector-agnostic diversified portfolio across 28, or more, qualifying investments.

Providing an opportunity to invest in sophisticated opportunities alongside experienced investors is key to SyndicateRoom’s ethos, along with transparency and fairness. Using the platform allows investors to put their money into opportunities alongside UK Business Angel of the Year Peter Cowley and ‘super angel’ Jonathan Milner.

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Par Equity invests time and money in innovative young companies with high growth potential. Our approach is hands-on, deploying intellectual as well as financial capital.

We offer qualifying investors EIS and other alternative asset funds, as well as a private client service.

To find out more, e-mail info@parequity.com or call us on +44 (0)131 556 0044.

Investors in innovation parequity.com Par Fund Management Limited (FRN 485668) is authorised and regulated by the Financial Conduct Authority. Venture capital investments carry risks as well as potential rewards and such investments are illiquid and exposed to the possibility of loss.

56 EIS Yearbook 2016/17

Investment Spotlight

GROWING THROUGH TOUGH TIMES Par Equity was born out of the financial crisis, but Partner Paul Munn tells Neil Martin they are now leading the pack as one of the largest venture capital firms in Scotland

Starting a venture capital firm in 2008 might have seemed like a brave decision, but it doesn’t appear to have harmed Edinburgh-based Par Equity.

The four founding partners of the firm, Paul Atkinson, Robert Higginson, Andrew Castell and Paul Munn, have created a firm which likes to address the challenges of investment in small, high growth potential companies.

The partners have differing backgrounds, but all have experience in building, managing and exiting businesses in a variety of industries as well as personal track records as investors.

Munn said the firm’s Par Syndicate EIS Fund is unique in the market as it utilises the experience of long-standing angel investors.

“It leverages the experience and commitment of angel investors in identifying and supporting investee companies for the benefit of passive fund investors,” he said.

“The involvement of experienced investors is a key ingredient in driving outperformance over the long term and even more vital given the risk profile of the investing in high growth companies.”

When searching for companies to invest in, Munn said they look for businesses “that are doing things in new and better ways”.

“This could be doing business more quickly, more efficiently or in a new context,” he said. “Our investment model harnesses the industry expertise, contacts and experience of a highly motivated individual investor base, drawn from successful entrepreneurs, managers and professionals with directly relevant insights that can be brought to bear at every stage.”

Munn said the firm has made a big impact over the last eight years.

“The breadth of our investment portfolio embracing hardware, textiles and med-tech as well as software has shown that opportunities exist for EIS investors beyond just the digital economy.”

As for engagement with advisers, Par Equity has seen them become investors as well as introduce clients to the group.

“Par Equity has largely built its investor base directly through its own network and by word of mouth. It has been the case that IFAs and investment advisers have been more likely to invest with us themselves than be a major source of clients,” he said.

“That is, however, changing and we are actively engaging with the adviser community based on our emerging track record, differentiated product and their growing interest in the EIS space.”

The future, said Munn, looks bright, especially as EIS, as a distinct asset class, is returning to its purist roots of supporting early stage risk based investing.

“Par Equity has always been a risk investor viewing the tax benefits to be a sensible mechanism to address the lack of capital available to innovative companies. As such Par is supportive of the recent changes to the EIS rules to discourage asset-backed, yield-driven products under the EIS banner.

“As investors and their advisers become more familiar with the asset class we believe it will grow significantly as investors seek long-term income and value creating investments and broaden their horizons from more traditional financial products.”

There are three key stages in the process: identifying and evaluating potential investee companies; supporting investee companies post-investment; and, assisting in the exit process.

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ACQUISITION AND SALES

O F I FA BUSINESSES Retirement?

Time for a change?

There are countless reasons to dispose of an IFA business, just as there are countless reasons to get hold of one.

WE ARE A S PECIAL I ST FI N A N C I A L S A LES , C O N S U LTA N C Y A N D B R O K ER AG E BUSI NESS. Gunner & Co.â&#x20AC;&#x2122;s mission is to work directly with you, whether you are looking to realise the capital in your business, or you are looking for growth through a merger or acquisition.

We consider every business to be unique, and therefore finding the right solution for you starts with a thorough understanding of your business operations and your wish list.

Only from here can we make valuable introductions which align to both partyâ&#x20AC;&#x2122;s needs.

If you would like to discuss options to sell, exit or retire, or acquire IFA businesses, please get in touch for a confidential discussion.

louise.jeffreys@gunnerandco.com

gunnerandco.com

ENHANCED PROFILES

KEY PERSONNEL Shane Gallwey heads up Guinness Asset Management’s EIS and IHT investment business. He has advised and invested in growth companies for seventeen years.

Initially he worked in corporate finance at HSBC Investment Bank, where he focused on technology companies, and latterly at Northland Capital Partners with a focus on tax-efficient funding.

Also key to the company are Fund Manager Edward Guinness and Investment Managers Malcolm King and Chris Villiers, Analyst Hugo Vaux, and Lead Manager of AIM EIS Andrew Martin Smith. Tim Guinness and Lord Flight sit on the investment committee.

COMPANY OVERVIEW Guinness Asset Management is a London-based specialist fund management company with more than £800 million under management. It was established in 2003, is independent and is focused purely on investment management.

The founder, Tim Guinness, had previously co-founded Guinness Flight Global Asset Management, which was sold to Investec Bank in 1998. The company is wholly owned by employees and has developed a reputation for intelligent screening and well-designed investment processes.

INVESTMENT STRATEGY The Guinness EIS team has raised and invested over £60 million in EIS-qualifying companies since it commenced investing in early 2011, and the team has made over 50 investments in that period. They have also exited their first two EIS portfolios, returning in excess of £1.20 per £1.00 invested (not including £0.30 EIS income tax relief) on both funds.

The investment management team is overseen by the investment committee, harnessing the considerable investment expertise of Tim Guinness, Andrew Martin Smith and Lord Flight, Chairman of the EIS Association.

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USPs • Reputation for intelligent screening and well-designed investment processes • Proven track record with multiple successful exits • £800 million assets under management, with over £60 million in EIS

KEY SERVICES AND FUNDS Guinness has three tax-efficient investment services open for subscription.

• Guinness EIS - focused on identifying and investing in asset-backed companies to prioritise capital preservation.

The focus is on companies where the risks can be mitigated contractually, or by the realisable value of the assets of the business.

• Guinness AIM EIS – an approved fund structure investing in new and secondary share issues of EIS qualifying companies benefitting from AIM listings. All fees are deferred to maximise the amount on which investors can claim EIS tax relief.

• Guinness Sustainable Infrastructure Service – invests in unquoted sustainable infrastructure businesses that qualify for business property relief. The focus is on rooftop solar projects where Guinness have a large pipeline of opportunities.

As well as its EIS and IHT offerings, Guinness Asset Management provides a range of actively managed, long-only equity portfolios designed to deliver real returns for long-term investors.

Guinness Asset Management, 14 Queen Anne’s Gate, London, SW1H 9AA Email: eis@guinnessfunds.com Phone: 020 7222 3475 www.guinnessfunds.com

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KEY PERSONNEL Richard Cook, Chief Executive Officer, has been involved in the structuring and management of tax-efficient investment assets for over 11 years.

Richard Simmonds, Chief Investment Officer, has over 12 years’ senior experience in financial services.

Guy Lavarack, Investment Director, has experience in the renewable energy and corporate finances sectors and is responsible for sourcing and executing new deals.

COMPANY OVERVIEW Blackfinch Investments is an established UK provider of tax-efficient investment solutions. Blackfinch’s origins go back to 1992, giving it more than 24 years’ experience of trading in the UK and it now has in excess of £500 million of assets under administration and management. Its philosophy is based on transparency and simplicity and its services provide real solutions to real financial planning challenges faced by individuals today.

INVESTMENT STRATEGY The Blackfinch EIS Portfolios allow investors to access the attractive tax benefits of EIS by investing into EIS qualifying companies that provide a degree of capital preservation and risk mitigation. Each investee company will have received advanced assurance from HMRC that they qualify for EIS relief before funds are deployed.

We are able to offer our investors a simple portfolio service that provides access to EIS companies enabling them to benefit from this tax relief and growth opportunity. We use our experience and expertise to select companies with strong management teams who access trading activities with an underlying element of comfort provided by asset security and predictable revenue streams. All of this, combined, means that we are able to mitigate many of the risks which are normally associated with companies offering this level of growth. Our EIS portfolios are a discretionary managed service which means that we select the investee companies on behalf of the investor according to our investment mandate.

The Blackfinch Investment Committee maintains involvement throughout the investment process. The committee is responsible for approving the investment into each of the underlying companies and for providing an oversight on the ongoing performance of these companies. This ‘hands-on’ approach ensures that our portfolios consist of high quality, strong companies that we believe will provide security and development for the future.

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USPs • Over 20 years experience • Shortlisted for the 2015 Growth Awards for Best BPR Provider • Specialist knowledge and experience in specific areas • Key support for intermediaries through product training, presentations, technical support, illustrations and case studies

KEY SERVICES AND FUNDS Blackfinch is innovative and constantly alive to the needs of advisers and their clients. With this in mind, Blackfinch have recently launched Blackfinch Asset Focused EIS which capitalise two small construction companies which will construct building projects within the residential and private commercial property markets.

Blackfinch also offer the Blackfinch Media EIS which invests in qualifying media companies that focus on music publishing by creating and owning original music scores for films and television programmes and television distribution that sells the broadcast rights for television programmes on behalf of producers.

Blackfinch Investments, Blackfinch House, Chequers Close, Malvern, Worcestershire, WR14 1GP Email: enquiries@blackfinch.com Phone: 01684 571 255 www.blackfinch.com

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KEY PERSONNEL Oliver Hughes Partner Infastructure Investments

Oliver Hughes, Partner, Infrastructure Investments, spent more than 10 years in Asia designing asset-back transaction structures. In the UK infrastructure market, Oliver has worked extensively on the development and financing of renewable energy and power generating assets.

Tom Bradley Partner Growth Investments

Tom Bradley, Partner, Growth Investments, joined Oxford Capital in 2015, having previously been a partner at DJF Esprit and latterly DN Capital. During his career Tom has worked closely with investee companies including Shazam, LOVEFiLM, VouchedFor.co.uk, Neteconomy and Mister Spex.

James Hipkiss Director Wealth Managers & Advisers

James Hipkiss, Director, Wealth Managers & Advisers, joined Oxford Capital in late 2014 after almost fourteen years in investment banking with Goldman Sachs, Merrill Lynch and latterly Berenberg.

COMPANY OVERVIEW Oxford Capital is one of most experienced tax-efficient investment managers in the UK, having raised and invested more than £300 million to date. We work in partnership with wealth managers and financial advisers, helping them to make tax-efficient investments a crucial part of their business model.

We have two investment strategies, Infrastructure and Growth, accessible through a range of tax-efficient investment structures.

INVESTMENT STRATEGY Our Infrastructure strategy aims to generate predictable returns over the longer term. We invest in small-scale power generation, which forms an important and growing part of the UK’s energy mix. This includes renewable energy, reserve power and combined heat and gas assets. Clients invest through our Estate Planning Service. Our infrastructure team also manages £200 million raised by the Oxford Capital Infrastructure EIS. Our Growth investment team backs small businesses seeking to solve big scientific, technological or commercial problems. Our current portfolio includes companies in sectors including games development, eCommerce, digital healthcare and artificial intelligence. This strategy can be accessed through the Oxford Capital Growth EIS.

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USPs • Two specialist investment teams offering access to different strategies and risk profiles • Collaborative approach to working with advisers, helping them to integrate tax-efficient investments into their advice model • Four-time winner of EIS Association’s Best EIS Fund Manager Award • Strong focus on transparency and client service, including annual reporting events • Founded in 1999, Oxford Capital was an early pioneer of EIS funds

KEY SERVICES AND FUNDS Through the Oxford Capital Growth EIS investors acquire a portfolio of shares in eight to 12 small or medium-sized British companies over a period of roughly 12 months. We work closely with our investee companies, with the aim of accelerating their growth and achieving profitable exits. The Oxford Capital Growth EIS targets a return of 2.0x the amount invested (not including the impact of EIS income tax relief), aiming to return the majority of proceeds four to six years after initial investment.

Our Estate Planning Service (EPS) can help investors mitigate inheritance tax by investing in companies which should qualify for business property relief. Clients can choose from a number of investment options, depending on their preference for capital growth or dividend income. Target returns range from 3% to 5% per annum, and capital can be accessed within one to six months through the sale of shares. The EPS currently invests primarily in renewable energy assets, but other assets are likely to be added to the portfolio in future.

Oxford Capital, 201 Cumnor Hill, Oxford, OX2 9PJ 4th Floor, One Chapel Place, London W1G 0BG Phone: 01865 860760 www.oxcp.com

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KEY PERSONNEL James Sore Chief Investment Officer

James Sore, Chief Investment Officer: James started his career at a boutique investment firm, originally as investment analyst and quickly moving to investment manager. He’s also built up his own private investment portfolio, while starting and selling companies. James is also a mechanical and electronics engineer with experience designing and developing products for world-leading brands such as Coca-Cola, Hershey’s, Pfizer and British American Tobacco.

Gonçalo de Vasconcelos Chief Executive Officer & co-founder

Gonçalo de Vasconcelos, Chief Executive Officer and co-founder: Gonçalo pioneered the investor-led crowdfunding model in the UK. In September 2011 he graduated with an MBA from Judge Business School, University of Cambridge, where he was awarded the Best Dissertation Prize and the Benavitch Scholarship for academic and professional achievements. Gonçalo is also a contributor for Forbes, writing and speaking about regularly about equity investment, business angel investment and venture capital investment.

Tom Britton Chief Technology Officer & co-founder

Tom Britton, Chief Technology Officer and co-founder: born in Los Angeles, Tom originally moved to the UK to play football. He went on to work in product development on a number of software-based projects, including managing the development of the mobile applications for Trainline. He completed his MBA at Cambridge, where he focused on developing startups, and has taken a keen interest in ventures focused on helping other startups.

COMPANY OVERVIEW SyndicateRoom is an equity crowdfunding platform, encouraging transparency, fairness and access for all. By allowing members to co-invest alongside experienced investors in highly sophisticated opportunities, they get access to the same economic terms as the lead investors. This applies to opportunities across the entire funding journey, from early stage private companies to premium segment listings on the main market of the London Stock Exchange.

Lead investors and advisers include UK Business Angel of the Year Peter Cowley and super-angel Jonathan Milner.

SyndicateRoom is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.

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INVESTMENT STRATEGY • Investing alongside lead investors • Targeting growth capital in companies that are: - Ideally in revenue, which can provide shorter times to exit - Usually pre-profit - Able to demonstrate strong and established management teams with proven business credentials - Aiming to generate an IRR of 20% or more - EIS eligible at the time of investment • Mitigating risk by building a sector-agnostic and diversified portfolio across 28 or more qualifying investments, for Fund Twenty8

KEY SERVICES AND FUNDS Fund Twenty8 is the industry’s first multi-sector and diversified EIS fund. This addresses those two key issues we see in the EIS fund space, single sector exposure risk (most funds are only single sector) and a lack of a diversified portfolio.

The advantage here is that the fund opens up to our investors the opportunity to build a truly diversified portfolio, across more sectors and more companies – a minimum of 28 – than traditional funds, along with all the added incentive of EIS tax relief.

Our launching of the fund was prompted by research from Intelligent Partnership and NESTA into early stage angel investing, which found that a minimum portfolio size of early stage businesses should consist of at least 28 companies – so as to most effectively spread risk and maximise one’s chances that one investment’s return will outweigh the decline of others. Traditional EIS funds generally only invest in between five and eight investments per fund and usually focus on a single sector.

SyndicateRoom, 71 Regent Street, Cambridge, CB2 1AB Email: contactus@syndicateroom.com Phone: 01223 478 558 Twitter: @SyndicateRoom www.syndicateroom.com

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KEY PERSONNEL Dr Paul Mattick, Head of Sales and Investor Relations; Paul has a wealth of experience in investor relations, having formerly worked as Private Client Manager at Oxford Capital, where he managed more than 250 client relations. Paul is also an entrepreneur and business-builder, having been the Founder and Sales Director of a small, profitable imports company.

COMPANY OVERVIEW Mercia Fund Management has more than £59 million assets under management. It specialises in the operation of tax efficient EIS & SEIS investment funds.

It is wholly owned by Mercia Technologies, a national investment group focused on building businesses from the UK regions to deliver returns from its shareholders. From seed through to exit, Mercia is in the compelling position of being able, with limited competition, to use a full range of capital - third party funds and its own balance sheet - to provide a ‘complete capital solution’ to build valuable businesses with truly global potential.

INVESTMENT STRATEGY Mercia has a strong emphasis on the capital-underserved regions of the Midlands, the North of England and Scotland, where local presence provides a material pricing advantage, as well as the relevant on-the-ground knowledge to identify the most exciting and innovative businesses.

Mercia manages its portfolio through a highly experienced board and investment team. This includes Chief Executive Dr Mark Payton and Chair Susan Searle. This expertise is then combined with industry-specific and venture-specific skills via an investment business which has a track record of 11 IPOs and over 60 employees, including a dedicated university technology transfer team.

Mercia’s Growth Funds are a unique hybrid of SEIS/EIS investments, blended into an early stage, technology-focused fund. Around 30% of Mercia’s deal flow is sourced from its 18 university partner network, one of the largest in the UK, which provides an enviable source of deal flow.

The most promising businesses from Mercia’s managed funds, the ‘emerging stars’, then go on to receive larger amounts of funding via Mercia Technologies’ balance sheet as they look to scale and exit.

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USPs • A ‘complete capital solution’ offering a single investment partner to high growth technology businesses • Below industry average management and initial fees • An easy-to-use online portal providing access to key documentation and a dashboard displaying the fund’s performance • An award-winning Share Exchange, potentially offering investors the chance to sell shares in an otherwise illiquid investment • An experienced team of business builders and investment professionals, many of whom have held senior-level positions at both national and global businesses • A dedicated investor relations team with ample experience of SEIS & EIS • An independent investment panel and advisory committee providing guidance on the implementation of Mercia’s investment strategy

KEY SERVICES AND FUNDS Mercia offers access to SEIS/EIS funds investing into small, highly scalable technology businesses. In some cases, these funds can be targeted to particular industries. Mercia has previously launched a fund dedicated to investing in digital businesses, as well as a University Growth Fund. It also manages an institutional evergreen fund that invests exclusively into university spinouts.

Additionally, Mercia offers a host of services to provide investors and their nominated advisers with transparent communication.

Central to this is Mercia’s award-winning Investor Centre.

The Investor Centre is a secure online portal that provides instant access to portfolio breakdown illustrations, fund documentation, digital copies of EIS and SEIS tax certificates, and portfolio company investment papers. The centre also operates a section dedicated to advisers and intermediaries, which offers access to all invested clients, alongside full portfolio reports.

Within the Investor Centre, an investor also has access to the Share Exchange, an easy-to-navigate platform that offers the potential for an investor to sell shares whenever an offer is made available by Mercia Technologies, thus potentially providing a degree of liquidity for an otherwise illiquid investment. The Share Exchange was named ‘Industry Game-Changer’ at the Growth Investor Awards in 2015.

Mercia Fund Management, Forward House, 17 High Street, Henley-in-Arden, Warwickshire, B95 5AA Email: enquiries@merciafund.co.uk Phone: 0330 223 1430 www.merciafund.co.uk

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KEY PERSONNEL Our client relationship team is led by Matthew Bugden, Ingenious Board Director and Head of Distribution, who is responsible for ensuring that our clients and their advisers are well looked after throughout the investment process.

Matthew leads the company’s capital raising activities with a focus on the development of new client relationships and alternative sources of capital.

During his 16 year Ingenious career, Matthew has supported advisers through the evolution of the EIS and Business Relief retail market and how these and alternative investments can fit with holistic financial planning. To this end he has successfully built and continues to manage a 30-strong team of experienced and highly respected client relationship professionals, serving the requirements of the thousands of wealth advisers with whom Ingenious has relationships. The national support, seminars, client meetings, in-house training, workshops and one-to-one sessions, are all examples of our dedication to equipping advisers with the tools they need to deliver outstanding outcomes for their clients.

COMPANY OVERVIEW For more than 18 years, investors have chosen Ingenious to manage their funds. In that time, we have raised and deployed over £9 billion across our chosen sectors including in excess of £880 million in EIS qualifying investments and over £1.1 billion in business relief qualifying investments.

INVESTMENT STRATEGY Ingenious creates value for its clients by identifying, funding and managing compelling investment opportunities. Our philosophy is clear: we help investors find simple solutions to complex problems, while managing their money conservatively. The conviction we have in our approach means we invest our own capital alongside that of our investors.

Investors benefit from risk mitigation through diversification, investing in multiple companies engaging in the production of a broad slate of commercial projects.

Our investment committees, made up of senior executives across the firm, ensure each investment decision is subject to rigorous research. This helps to ensure that we deliver to our clients’ expectations by bringing value to portfolios through selecting diversified opportunities which seek to preserve wealth while targeting asset growth.

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USPs • Sector expertise: we are one of the largest independent investors in the UK’s creative economy with long standing media expertise. In the last five years we’ve diversified into the infrastructure and real estate sectors.

• Multi-disciplinary team: our dedicated teams of lawyers, compliance and technical specialists work closely with our in-house fund managers to ensure exceptional execution capability.

• AIFMD: we are one of few EIS providers in the industry to be approved by the Financial Conduct Authority (FCA) as a full-scope manager under the Alternative Investment Fund Managers' Directive (AIFMD), giving our investors the reassurance of additional governance.

KEY SERVICES AND FUNDS Ingenious currently has four open EIS opportunities across our media and infrastructure sectors. The range is designed to deliver maximum value to investors. In sourcing new opportunities, we seek out reliable and reputable partners with whom we can collaborate, while simultaneously contributing to the wider economy.

The Ingenious Group, 15 Golden Square, London, W1F 9JG Email: hello@theingeniousgroup.co.uk Phone: 020 7319 4291 www.theingeniousgroup.co.uk

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KEY PERSONNEL Ian Warwick, Managing Partner: Prior to forming Deepbridge, Ian spent the previous 15 years leading publicly listed technology businesses in the UK and USA, focusing on business structure, capital information, transformation and growth.

Professor Chris Wood, Partner: Chris has over two decades of experience in the biotechnology sector, having founded, managed and successfully exited two biotechnology companies; Bioenvision Inc. and Medirace Limited.

Professor Nagy Habib, Partnership Board Member: Nagy is Professor of Hepatobiliary Surgery at Imperial College London, with principal research activities focusing on the improvement of surgical technologies.

Dr. Robert S Bauer, Partnership Board Member: Robert has over 30 yearsâ&#x20AC;&#x2122; experience of turning innovative technologies into strategic advantages.

Sir Richard Sykes, Supervisory Investment Committee Chairman: Sir Richard is the Chairman of Council of The Royal British Institution of Great Britain and Chairman of the UK Stem Cell Foundation.

Kieran Oâ&#x20AC;&#x2122;Gorman, Technical Partner: Kieran has an in-depth knowledge of the private capital markets, involving capital raising, investor relations and communication and is responsible for fund-raising activities at Deepbridge.

Dr Savvas Neophytou: Prior to Deepbridge, Savvas enjoyed a 15 year career in the City, working as an investment banker and ECM at JP Morgan, Bear Stearns, Shore Capital, Cantor Fitzgerald and Panmure Gordon.

Rick Parry, Partner: Rick is an adviser to the Kingdom of Saudi Arabia, former CEO of the FA Premier League, and former CEO of Liverpool Football Club.

COMPANY OVERVIEW Deepbridge is a different kind of investment manager. Its experienced team of business-builders works closely with financial advisers and investors to design innovative products, ranging from investment in technology growth companies to asset backed renewable energy projects. Deepbridge partners with innovative and committed management teams to help UK based companies realise their potential and become successful leading-edge businesses. Deepbridge operates across four principle divisions: disruptive technology, sustainable technologies, life sciences and renewable energy.

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USPs • Hands-on management style with investee companies – ensuring companies are managed appropriately and in investors’ interests • Considerable sector experience within the areas we invest; technology, life sciences and renewable energy • Independent governance and oversight • No fees to the investor, ensuring maximum share allocation and 100% of investment is eligible for any potential tax benefits • A proven track record of successfully generating significant returns for investors; particularly in the technology and life sciences markets • Transparent approach – investors are provided with half yearly reports on all of their underlying investee companies.

Not just a financial statement but a real report on activity, progress and challenges • All investors can be advised in advance as to exactly which companies their money will be invested • Investee companies are only selected if they meet stringent criteria and the Deepbridge team can add additional support other than just money

KEY SERVICES AND FUNDS Deepbridge Technology Growth EIS: an opportunity to participate in a portfolio of actively-managed high-growth companies that employ technological solutions, taking advantage of the potential tax benefits available under EIS. Deepbridge Life Sciences SEIS: an opportunity to secure potentially attractive returns by investing in a diversified portfolio of early-stage life science companies, whilst taking advantage of the considerable income tax, capital gains tax, and inheritance tax benefits available under SEIS. Deepbridge IHT Service: an opportunity for investors to obtain relief from inheritance tax after only two years, the Deepbridge IHT Service invests in Business Relief qualifying companies that invest in renewable energy generation assets, where capital preservation is key.

There are no management charges levied on the investor, resulting in up to 100% allocation of the subscription. This ensures up to 100% tax efficiency for investors. Deepbridge fees are paid by the investee companies.

Deepbridge Capital, Deepbridge House, Honeycomb East, Chester Business Park, Chester, H4 9QN Phone: 01244 746000 www.deepbridgecapital.com

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DIRECTORY

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Directory

ACCELERIS CAPITAL

www.acceleris.com

Norman Molyneux • 0161 850 0170

normanmolyneux@acceleris.com

ALBION VENTURES LLP

www.albion-ventures.com

Patrick Reeve • 020 7601 1850

preeve@albion-ventures.co.uk

AMADEUS CAPITAL PARTNERS LTD

Amerlia Armour • 01223 707 023

www.amadeuscapital.com aarmour@amadeuscapital.com

ARMSTRONG ENERGY

www.armstrongenergy.com

Alan Yazdabadi • 020 7749 2400

patricia.e.reynolds@artcapman.com

ARTERIAL CAPITAL MANAGEMENT LTD

www.rtcapman.com

Patricia Reynolds • 020 7129 1145

patricia.e.reynolds@artcapman.com

ARTESIAN GROUP

www.artesian.co.uk

Duncan MacDonald • 020 7350 3000

duncanmacdonald@artesian.co.uk

AMATI GLOBAL INVESTORS

www.amatiglobal.com

Rachel Le Derf • 0131 503 9104

rachel.lederf@amatiglobal.com

Amati AIM IHT Portfolio Service Designed to work in association with financial advisers, the Amati AIM IHT Portfolio Service is a discretionary investment management service.

The investment team at Amati have over 50 years of combined experience in UK smaller companies, and an award winning investment management track record, in particular expertise in UK smaller companies and AIMquoted stocks.

Holdings will be based on a model portfolio made up of profitable companies which fit into one of four categories: owner-managed; family businesses with well-built brands; established technology companies; and special situations with attractive yields.

Amati works closely with financial advisers, who will assess the Service and consider whether the solution offered by the Service is suitable as part of each client’s overall investment strategy.

Charges Annual management fee of 1% plus VAT on portfolio value, no initial/exit or dealing charges.

Key Features • Minimum investment £15,000 • Shares held on client’s account, not as part of a collective investment scheme • Standardised portfolio, based on Amati’s Model Portfolio template • Can be held as an ISA

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BERINGEA LLP

www.beringea.co.uk

Oliver Ashton • 020 7845 7820

oashton@beringea.co.uk

BOUDICA FILMS

www.boudicafilms.co.uk

Rebecca Long • 07947 867 171

rebecca@boudicafilms.co.uk

CALCULUS CAPITAL

www.calculuscapital.com

Madeleine Ingram • 020 7493 4940

madeleine@calculuscapital.com

Calculus Capital is a pioneer in the tax efficient space, having created the UK’s first approved EIS Fund in 1999, and launched multiple share issues in our VCTs. Our 17+ invaluable years of investing experience underpin our reputation as a successful supporter of small UK businesses. Our multi award winning funds have a strong focus on capital appreciation, a diligent investment and monitoring process, and a record of profitable exits.

Our investment strategy focuses on established companies, with strong management teams and impressive growth potential - across a diverse range of sectors.

The Calculus VCT is open until October 21st, the next close for the Calculus EIS Fund is October 28th, with subsequent closes in January and April.

CHELVERTON ASSET MANAGEMENT

www.chelvertonam.com

David Horner • 01225 483 030

cam@chelvertonam.com

CHF ENTERPRISES

www.chfenterprises.co.uk

Nicola Johnstone • 07867 781 815

nicolajohnstone@chfmedia.com

COCOON WEALTH LLP

www.cocoonwealth.com

Tim Levy • 020 7478 2800

tim.levy@cocoonwealth.com

COMPARE INVESTMENTS DOT GURU

www.compareinvestments.guru

David Newman • 020 7993 5307

admin@compareinvestments.guru

Set up in February 2015 by industry professionals, Compare Investments Dot Guru (CIDG) formulated a comprehensive strategy to become the only source for impartial and trusted financial product comparison.

CIDG already reports on and compares, most of the readily available Alternative Investment products today.

Furthermore, it does this without payment from any product provider, promoter, fund, broking house or investment house, making the comparisons and reporting unique, objective and uncompromised. The SEIS, EIS, VCT & BPR reports together with comparison information are available now online - via an annual subscription of £299 Including VAT.

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DAEDALUS PARTNERS LLP

www.daedalus-partners.com

Gavin Harrison • 020 37 81 7375

gavin.harrison@daedalus-partners.com

DRAPER ESPRIT EIS, MANAGED BY ENCOR

www.draperesprit.com

Richard Marsh • 020 7931 8800

eis@draperesprit.com

EDGE INVESTMENTS

www.edge.uk.com

David Glick • 020 7317 1300

info@edge.uk.com

ELDERSTREET INVESTMENTS

www.elderstreet.com

William Horlick • 020 7831 5088

william@elderstreet.com

ENDEAVOUR VENTURES LIMITED

www.endven.com

Bill Cunningham • 020 7927 7462

bill@endven.com

FORESIGHT GROUP LLC

www.foresightgroup.eu

Gary Fraser • 020 3667 8100

gfraser@foresight.eu

FUNDAMENTAL ASSET MANAGEMENT

www.fundamentalasset.com

Chris Boxall • 01923 713 890

cboxall@fundamentalasset.com

Fundamental Asset Management is an independent, owner managed, investment management firm with an unrivalled knowledge of the AIM market. It has successfully provided AIM portfolio management with inheritance tax planning to private investors, trusts and institutions since 2004. Fundamental has extensive experience in investing in AIM and has delivered outstanding returns to clients since inception. We conduct in-depth, in-house research, visiting and meeting senior management of hundreds of companies each year.

As well as being available on its own broker platform the Fundamental AIM IHT Portfolio service can also be accessed through the AXA Elevate, Nucleus and Transact platforms.

GIZMO FILMS

www.gizmofilms.com

Peter Dunphy • 07966 531 863

p.dunphy@gizmofilms.com

GREAT POINT MEDIA LTD

www.greatpointmedia.com

Jim Reeve • 020 3873 0020

jreeve@greatpointmedia.com

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GROWTHDECK

www.growthdeck.com

Richard Lewis • 0800 302 9444

richard.lewis@growthdeck.com

GROWTHINVEST

www.growthinvest.com

Daniel Rodwell • 020 7071 3945

growthinvest@lgbrtax.com

GrowthInvest is a unique, independent platform which provides tax efficient investments to a growing network of UK financial advisers, wealth managers and investors. The platform aims to bring the advantages of early stage investing to a wider audience of investors and advisers, who are in a position to benefit from the higher returns and (government sponsored) tax efficiency. The purpose-built technology allows clients to consolidate, control and enhance their investment portfolio within a single, secure online portal.

Originally founded by financial advisers in 2012 as SeedEIS Platform, the company rebranded as GrowthInvest in October 2016 in order to better reflect the launch of a new platform, a wider range of products and services available, and as a precursor to the launch of a GrowthInvest branded EIS Portfolio fund in Autumn 2016.

GOLDCREST FILMS

www.goldcrestfilms.com

Mike Georgiou • 020 7437 7972

receptionpost@goldcrestfilms.com

HARCOURT CAPITAL

www.harcourtcapital.co.uk

Emma Edelson • 020 3178 3341

emma.edelson@harcourtcapital.co.uk

IF MACKINNON & CO LLP

www.ifmackinnon.co.uk

Iain Mackinnon • 01983 282 925

iain.mackinnon@ifmackinnon.co.uk

INNVOTEC

www.innvotec.co.uk

John Marsden • 020 7630 6990

jmarsden@innvotec.co.uk

JENSON FUNDING PARTNERS

www.jensonfundingpartners.com

Matt Ellams • 020 7788 7539

seis@jensonsolutions.com

We are pleased to follow-up our first three funds with a combined SEIS and EIS Fund (‘Fund 4’). Our offering allows investors to choose whether they want to invest solely via SEIS or EIS or to split their funds across SEIS and EIS investments to provide increased diversification. The Fund aims to target exciting new innovative and disruptive technologies to be nurtured alongside existing investment opportunities that require followon investment to fully exploit commercialization of a proven business model. At Jenson we aim to offer these businesses far more than just funding, allocating a Jenson Finance Director, we have actively advised entrepreneurs to re-evaluate business models, reduced projected costs and introduced potential executives, partners, customers and suppliers as part of the value added service we provide. Further we believe the addition of an experienced finance director to the management team of investee companies, even on a part-time basis, will enhance returns, which is a key differentiation between ourselves and other SEIS and EIS providers

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Directory

JOULE ASSETS EUROPE

www.eu.jouleassets.com

Jessica Stromback • 00 32 0485 294 030

jstromback@jouleassets.com

MARIANA INVESTMENTS

www.marianainvestments.com

Josh Knight • 020 7065 6699

josh.knight@marianainvestments.com

MERCER & HOLE

www.mercerhole.co.uk

Cathy Corns • 01908 605 552

MOUNTAIN CONSULTING

www.mountainconsulting.co.uk

Tony Davis • 07973 379 611

tony@mountainconsulting.co.uk

MMC VENTURES LTD

www.mmcventures.com

Anna Slemmings • 020 7938 2200

anna.slemmings@mmcventures.com

Founded in 2000, MMC Ventures is one of the UK’s most active and experienced EIS fund managers. MMC has invested in more than 50 companies and focuses on technology-enabled sectors where the UK is a world leader – particularly financial and business services, business software, digital media and consumer internet.

MMC’s fundamental approach is to invest on the commercial merits of each transaction, viewing the EIS tax benefits as highly desirable but not the reason to invest. As such the MMC EIS Fund offers investors exposure to a portfolio of hard-to-access fast growing private companies, combining real capital upside potential with generous EIS tax reliefs.

MILLS & REEVE LLP

www.mills-reeve.com

Zickie Lim • 01223 222 482

zickie.lim@mills-reeve.com

MOTION PICTURE CAPITAL

www.motionpicturecapital.com

Nigel Jealous • 020 7025 8195

nigel@motionpictures.com

OAKFIELD CAPITAL PARTNERS LLP

www.oakfieldcapital.co.uk

Brett Hochfeld • 020 7084 7274

brett@oakfieldcapital.co.uk

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OXFORD TECHNOLOGY MANAGEMENT

www.oxfordtechnology.com

Lucius Cary • 01865 784 466

lucius@oxfordtechnology.com

Oxford Technology Management was founded in 1983 and specialises in making high-risk, high-reward investments in technology start-ups. Our investment team are all scientists or engineers by background, and understanding the technology is the starting point for any investment that we make. Our latest fund is OT(S) EIS, a combined SEIS and EIS fund which made its first investment in 2012, and has since made 50 investments in 23 companies. There have been two failures, but the losses on these are only £33,000.

Several investments have gone well and the gains on these (on paper only so far) are £3.3 million, almost 100x the losses.

PARKWALK ADVISORS

www.parkwalkadvisors.com

Alastair Kilgour • 020 7759 2290

akilgour@parkwalkadvisors.com

PRESTIGE FUNDS

www.prestigefunds.com

Craig Reeve • 020 3178 4055

creeve@prestigefunds.com

PUMA INVESTMENTS

www.pumainvestments.co.uk

Sam McArthur • 020 7647 8128

sam.mcarthur@pumainvestments.co.uk

RATHBONE INVESTMENT MANAGEMENT

www.rathbones.com

Ivan Teare • 0151 236 6666

ivan.teare@rathbones.com

ROCKFIRE CAPITAL

www.rockfirecapital.com

Liam Kavanagh • 020 3174 2508

liam.kavanagh@rockfirecapital.com

ROCKPOOL INVESTMENTS LLP

www.rockpool.uk.com

Matt Taylor • 020 7015 2150

mtaylor@rockpool.uk.com

With Rockpool, advisers can shape an EIS investment programme to suit their clients’ needs. This is particularly helpful when rapid deployment is key, for example to meet a CGT deadline or to enable carry-back. Transparency is vital, so we provide quarterly reporting on every company, plus always-on access to full portfolio information, up to date valuations and EIS3 certificates. Our EIS Managed Portfolio Service provides a simple route to these benefits. Alternatively, clients can be introduced to the Rockpool platform, where they select companies directly, whilst enabling a trusted adviser to monitor their portfolio.

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Directory

SENECA

www.lgbrcapital.com

Jack Rose, LGBR Capital • 020 7071 3926

seneca@lgbrtax.com

The Seneca EIS Portfolio Service is an evergreen discretionary management service that offers investors the opportunity to build a portfolio of equity investments in UK based SMEs, which are seeking an injection of capital to fund their next phase of growth.

The Service gives investors a portfolio of 4-6 investments per year diversified by sector. It targets investment returns of £1.60 to £1.80 per £1 invested (excluding tax reliefs). The EIS Service totals over £34 million and has completed 45 investment rounds across 28 companies. 13 companies in the portfolio service are already AIM listed providing liquidity, market pricing and exit visibility for investors.

The Portfolio Manager, Seneca Partners, is part of the wider Seneca business, which has c. £450 million invested assets and over £4 billion debt under advice.

The knowledge, experience and pedigree of Seneca’s investment team, combined with their individual track records of successful investing in the SME sector, is complimented by an extensive deal flow network in the UK’s SME heartlands of northern England and the West Midlands.

SOPHROSYNE VENTURES

www.sophrosynventures.com

Gary Jackson •

gary@sophrosynventures.com

SOVEREIGN

www.sovereign-group.com

Martin Keatman • 020 7268 2477

martin@sovereign-group.com

ST JAMES’ PLACE WEALTH MANAGEMENT

www.sjp.co.uk

Tony Mudd • 01285 878 268

tony.mudd@sjp.co.uk

STELLAR ASSET MANAGEMENT LTD

www.stellar-am.com

Jonathan Gain • 020 3195 3500

jonathan.gain@stellar-am.com

SUSTAINABLE TECHNOLOGY INVESTORS LTD

www.still.uk.com

Gordon Power • 020 3657 4860

grp@still.uk.com

THE WINE INVESTMENT FUND

www.wineinvestmentfund.com

Andrew Della Casa • 020 7478 0901

adc@wineinvestmentfund.com

TRIPLE POINT INVESTMENT MANAGEMENT

www.triplepoint.com

Claire Ainsworth • 020 7201 8900

contact@triplepoint.com

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Directory

VIRIDIS NAVITAS CAPITAL PARTNERS

www.vn-cp.co.uk

David Newman • 020 7993 5307

dnewman@vn-cp.co.uk

WORTH CAPITAL

www.worthcapital.uk

Hayley Etherington • 020 7428 6006

hayley@worthcapital.uk

Worth Capital exists to help the UKs brightest entrepreneurs obtain funds and expertise required to turn their innovations into thriving businesses, whilst delivering returns for investors.

In partnership with Startups.co.uk, the ‘go to’ platform for entrepreneurs, Worth Capital has launched The Start-up Series, the UK’s largest ever seed funding competition. Every month one start-up business will qualify, subject to terms, to receive up to £150,000 of seed capital.

Worth Capital and fund specialists Amersham Investment Management have created the Start-Up Series SEIS Fund One to invest £2.1 million, principally in the 12 monthly winners of the first year of the Start-Up Series and to allow for further discretionary investments.

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INFORMATION

MEMORANDUM For further information, please contact

Nicola Johnston Head of Finance nicolajohnston@chfmedia.com +44 (0)845 512 1000

www.chfenterprises.co.uk i

OPEN OFFERS Highlighting some of the key offerings currently available to IFAs

EIS

SEIS

VCT

SITR

IHT

BPR

Open Offers

EIS Open

December 2015

Close

At Capacity

Amount to be Raised: £20m

TIME:EIS Shipping TIME:EIS Shipping invests in dry bulk shipping, offering investors an asset backed opportunity in a global industry that has been established for thousands of years. Shipping is a sector recently identified by the Government as vital to the UK economy and one it is keen to support.

Targeting a base case return of £1.27 for each net 70p invested, this noncontentious business model makes TIME:EIS Shipping an excellent fit within the EIS regulations – which is why advance assurance from HMRC has already been granted.

TIME:EIS Shipping has an initial capacity of £20 million, after having raised its full £5 million for its first tranche in the 2015/16 tax year, tranche 2 is now open for investment in the 2016/17 tax year. Alongside our specialist EIS team, support is provided by third parties with substantial experience in shipping.

Key information for TIME:EIS Shipping • Asset backed, with investment realisation expected within 4-5 years

T. 020 7391 4747 E. questions@time-investments.com www.time-investments.com

EIS Open

Close

Evergreen

Evergreen

Amount to be Raised: N/A Minimum Investment: £25,000

T. 01865 860 760 E. investment@oxcp.com www.oxcp.com

• Each vessel purchased without use of debt, thereby reducing the overall risk profile • Highly rated by independent researchers • Minimum investment £10,000

Oxford Capital Growth EIS Through the Oxford Capital Growth EIS, investors can build a portfolio of shares in 8-12 companies over a period of roughly 12 months. Each portfolio company should be eligible for EIS reliefs, including 30% income tax relief and tax-free gains.

We invest in small businesses seeking to solve big scientific, technological or commercial problems. Our current portfolio includes companies in sectors including games development, eCommerce, digital healthcare and artificial intelligence.

We work closely with our investee companies, helping to accelerate commercial development with the aim of achieving a profitable exit, usually through either a trade sale or a stock market listing. The Oxford Capital Growth EIS targets a return of 2.0x the amount invested (net of applicable fees and not including the impact of EIS tax reliefs), aiming to return the majority of proceeds 4-6 years after initial investment.

EIS Open

21/09/2016

Close

31/12/2016

Amount to be Raised: £560,000 Minimum Investment: £10,000

T. 020 7233 7602 E. info@gizmofilms.com www.gizmofilms.com/funnycow

EIS Investment in forthcoming Martin Freeman & Maxine Peake Film ‘Funny Cow’ has already been acquired by Entertainment One, the distributor behind ‘12 Years a Slave’, ‘The BFG’ and ‘Spotlight’ guaranteeing wide distribution of this major UK comedy drama. As well as Freeman and Peake cast includes Stephen Graham (Boardwalk Empire), Vic Reeves and more.

EIS investors can expect a 20% premium on their investment return a high position in the recoupment ‘waterfall’ of incoming revenue and exclusive benefits such as set visits, red carpet premiere invites and screening.

Gizmo Films, a highly experienced film finance company led by private equity & EIS specialist Peter Dunphy, has selected ‘Funny Cow’ on behalf of its investors due to the strong return schedule, top name cast and guaranteed distribution.

Production takes place between November 2016 and May 2017.

Suitable for self certified sophisticated and HNW investors only. Gizmo Films works with HMRC approved SEIS and EIS firms only. Financial partner Brown McLeod & Legal Partner Lee & Thompson. Banking partner Barclays Bank.

EIS Yearbook 2016/17

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EIS Open

Close

Now

Evergreen

Minimum Investment: £20,000

Guinness EIS Guinness EIS is focused on identifying and investing in asset-backed companies to prioritise capital preservation. The focus is on companies where the risks can be mitigated contractually, or by the realisable value of the assets of the business. The investment objective of Guinness EIS is to deliver tax-free investment returns of over £1.25 per £1.00 invested, net of all fees, in addition to £0.30 of EIS Income Tax Relief.

Investors can expect to own between three and six investments in companies from a range of sectors that offer target investment characteristics. Examples of these are: • Businesses whose value is underpinned by property or land ownership such as nurseries, gyms and pubs.

T. 020 7222 3475 E. eis@guinnessfunds.com www.guinnessfunds.com

EIS Open

Close

January 2014

Open-ended

Amount to be Raised: Unlimited

• Companies where a proportion of their value is through ownership of tangible and tradable assets. This includes trading businesses such as luxury goods dealers, or businesses with tradable assets such as logistics and freight.

• Businesses such as waste management or recycling that come with long term contracts and high visibility of cashflows.

PUMA INVESTMENTS - PUMA EIS The Puma EIS Service employs a proven investment strategy to offer exposure to asset-backed investments across a range of sectors. Puma EIS seeks to support the growth of UK SMEs whilst focussing on capital preservation. It seeks to deliver appropriate risk-adjusted returns together with the full range of EIS tax reliefs on 100% of funds subscribed to the Service (after deduction of Financial Adviser charges) depending on individual circumstances.

Successful deployment: Puma EIS has raised £40m+ to date. All funds raised have been successfully deployed in EIS Qualifying companies within the tax year of subscription to the service.

Closing dates: Puma EIS is an evergreen service but operates quarterly fund closes usually in April (just prior to the end of the tax year), July, October and January. Funds are allotted as soon as possible following these closes.

T. 020 7408 4070 E. info@pumainvestments.co.uk www.pumainvestments.co.uk

EIS Open

01/08/2013

Close

N/A

Amount to be Raised: Uncapped

Realisations: It is envisaged that investments in Qualifying Companies will be realised within 3 to 5 years.

Investment Size: Minimum subscription is £15,000 with no upper limit.

Deepbridge - Technology Growth EIS The Deepbridge Technology Growth EIS represents an opportunity for investors to participate in a portfolio of actively-managed growth-stage technology companies, taking advantage of the potential tax benefits available under the Enterprise Investment Scheme. The Deepbridge Technology Growth EIS is a diversified portfolio of actively managed high-growth companies seeking commercialisation funding. The Deepbridge EIS invests in companies that have a proven technology, clear intellectual property and are operating in a high growth/high value market sector.

Focused on investing in high growth companies that are seeking to commercialise and expand, specifically in three sectors: • Energy & resource innovation; • Medical technology • IT-based technology

T. 01244 746000 www.deepbridgecapital.com

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EIS Yearbook 2016/17

The target return for the Deepbridge Technology Growth EIS 22.9% p.a. over a minimum of three years; representing mid-case capital growth of 160p returned for every 100p invested. To ensure maximum tax efficiency for the investor, the Deepbridge EIS is entirely investor-fee free at point of investment.

Open Offers

EIS Open

Close

05/09/2016

16/12/2016

Minimum Investment: £10,000

Ingenious Broadcasting 2016/17 Ingenious Broadcasting service first launched in 2005 and is our longest running service investing in EIS qualifying companies that develop and produce high quality television content.

Ingenious Broadcasting has raised more than £400m since inception and backed EIS qualifying companies, which have collectively produced over 160 television programmes totalling over 600 hours including Marcella, Jonathan Strange & Mr Norrell, The Frankenstein Chronicles, Plebs, Clangers and The Teletubbies.

Due to client demand, the minimum for investment in this service is now £10,000 (reduced from £50,000), providing greater opportunity for your clients to invest and diversify.

Investors in this service could benefit from: • Attractive underlying investments - our long-standing pivotal position in the media industry ensures that we have access to a compelling pipeline of new and exciting opportunities within film and television • Advance Assurance - the manager will only invest in companies that have received advance assurance from HMRC This is in addition to the usual EIS benefits.

T. 020 7319 4290 E. hello@theingeniousgroup.co.uk www.theingeniousgroup.co.uk

EIS Open

Close

05/09/2016

16/12/2016

Minimum Investment: £10,000

Ingenious Capital Management Limited (ICML) is authorised and regulated by the Financial Conduct Authority

Greenlight Media 2016/17 Greenlight Media provides an opportunity to invest in a portfolio of companies creating high quality independent film and television content. Greenlight Media has been developed in response to investors’ growing appetite for a broader investment remit that can offer potentially greater returns. The service will pursue a blended investment strategy that will target uncapped upside potential while mitigating performance risk by our proven approach to significant downside protection.

Investors in this service could benefit from: • Attractive underlying investments - our long-standing pivotal position in the media industry ensures that we have access to a compelling pipeline of new and exciting opportunities within film and television • Advance Assurance - the manager will only invest in companies that have received advance assurance from HMRC This is in addition to the usual EIS benefits.

T. 020 7319 4290 E. hello@theingeniousgroup.co.uk www.theingeniousgroup.co.uk

EIS Open

Now

Close

Evergreen

Amount to be Raised: N/A

T. 0131 556 0044 E. info@parequity.com www.parequity.com

Ingenious Capital Management Limited (ICML) is authorised and regulated by the Financial Conduct Authority

Par Syndicate EIS Fund The Par Syndicate EIS Fund is an evergreen EIS fund, unapproved by HMRC, investing in innovative high growth potential companies with a view to generating capital gains. The fund, managed by Par Fund Management Limited, made its first investment in December 2012 and realised its first exit in June 2016, with sixteen investments to date.

The fund’s mandate is to invest alongside (and on the same terms as) business angel syndicates, and usually co-invests with the Par Syndicate, a leading business angel group that has been investing in a broad range of technology businesses since 2009. The fund may be promoted to retail investors under COBS 4.7. Independent research reports have been published by Hardman & Co. and MICAP.

EIS Yearbook 2016/17

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EIS Open

Close

Now

Evergreen

Minimum Investment: £20,000

T. 020 7222 3475 E. eis@guinnessfunds.com www.guinnessfunds.com

EIS Open

Close

07/06/2016

31/12/2016

Maximum Raise: £25m Minimum Investment: £10,000

T. 01223 478 558 E. fundtwenty8@syndicateroom.com www.syndicateroom.com/fund-twenty8

EIS Open

25/08/2016

Close

16/12/2016

Minimum Investment: £10,000

Guinness AIM EIS Guinness AIM EIS has been established to make investments in AIM-listed companies that are eligible for EIS tax reliefs. The investment objective of Guinness AIM EIS is to deliver tax-free investment returns of over £1.30 per £1.00 invested, net of all fees, in addition to £0.30 of EIS Income Tax Relief.

The Investment Manager will invest in a portfolio of AIM listed companies that it believes will offer capital gain underpinned by sound financial assumptions and robust management teams. Investors benefit from the investment management experience of Andrew Martin Smith, who has 40 years of experience in the financial services and has made a large number of smaller company investments over that period.

For this service, Guinness defer all fees until exit, which maximises the amount on which investors can claim EIS tax reliefs.

Fund Twenty8™

Fund Twenty8™ (the Fund) is the first time a passive approach to investment has been made available to EIS investors. Fund Twenty8™ will invest alongside Business Angels, Venture Capitalists and other Institutional Investors (the Lead Investors). Fund Twenty8™ will use the SyndicateRoom website (Platform) to source and review the deal flow, and will track and automatically invest equally alongside SyndicateRoom’s Sophisticated Investors, who are investing individually on the Platform (Platform Investors). Fund Twenty8™ will only commit funds in opportunities that reach the Minimum Target Amount (MTA) on the Platform. When an investment is oversubscribed and exceeds the MTA, Fund Twenty8™ will increase its allocation into these high demand deals.

Fund Twenty8™’s investment will contribute to achieving the MTA. It is a key objective of Fund Twenty8™ to build a diversified portfolio of no less than 28 different investments across a range of sectors. Fund Twenty8™ will not invest more than 1/28th of subscriptions into a single deal to guarantee a portfolio of at least 28 investments. Eligible Fund Investors may receive favourable tax treatment. Previous Lead Investors on the Platform include both 2013/14 and 2014/15 UK Business Angel Association “Angel Investors of the Year” and award-winning Venture Capitalists.

Shelley Media 2016/17 About Shelley Media The Shelley Media service is now well established having raised more than £300m over the last six years since inception and backed EIS qualifying companies which have collectively produced over 100 film and television projects. Recent critical and commercial successes include the 2016 Oscar® nominated pictures Brooklyn and Carol with a pipeline of new productions spanning the action thriller Kidnap starring Oscar® winner Halle Berry, crime comedy Bad Santa 2, starring Billy Bob Thornton and the romantic comedy How to Talk to Girls at Parties, starring Oscar® winner Nicole Kidman.

Investors in this service could benefit from: • Attractive underlying investments – Ingenious’ long-standing pivotal position in the media industry ensures that we have access to a compelling pipeline of new and exciting opportunities within film and television • Advance Assurance - the manager will only invest in companies that have received advance assurance from HMRC This is in addition to the usual EIS benefits.

T. 020 7319 4290 E. hello@theingeniousgroup.co.uk www.theingeniousgroup.co.uk

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EIS Yearbook 2016/17

Ingenious Capital Management Limited (ICML) is authorised and regulated by the Financial Conduct Authority

Open Offers

EIS Open

Close

06/09/2016

Evergreen

Amount to be Raised: Open Minimum Investment: £25,000

Blackfinch Asset Focused Enterprise Investment Scheme The Blackfinch Asset Focused EIS Portfolios allow investors to access assetbacked trading activities that provide a degree of capital preservation and risk mitigation. The EIS portfolios are a discretionary managed service that means Blackfinch select the investee companies on behalf of the investor according to our investment mandate. First and foremost, we will only invest into companies that have been granted Advance Assurance from HMRC, providing comfort to the investor that they qualify for the valuable EIS tax reliefs.

There is a clear opportunity for a well-capitalised construction company, with access to a strong developer network and opportunities to construct commercially appealing projects with granted planning permission. Together, with a strong management team who have experience and extensive expertise in the sector and access to the relevant construction skill sets, this provides a compelling investment opportunity which can deliver growth and development in order to produce a strong return for the investor.

T. 01684 571 255 E. enquiries@blackfinch.com www.blackfinch.com

EIS Open

01/04/2015

Close

April 2017

Amount to be Raised: Open Minimum Investment: £25,000

Coupled with the strong underlying security provisions inherent within the trading activity, this combination provides opportunity to access a strong riskadjusted return. The Blackfinch Asset Focused EIS will initially expect to invest in private domestic property construction with project sizes between £250,000– £3,000,000 and commercial property construction such as retirement living, nursing homes and crematoria.

Blackfinch Media EIS Portfolios The Blackfinch Media EIS Portfolios will invest in EIS qualifying companies including music publishing companies or television production and distribution companies. Our music publishing companies are responsible for creating, protecting, administering and monetising rights in musical compositions on behalf of musicians, songwriters and composers.

Music publishing royalties are the revenues due to the owner of that underlying intellectual property and are generated from a number of sources: PERFORMANCE ROYALTIES - Generated when music is performed publicly through broadcast on television, radio, cable and satellite or live performances SYNCHRONIZATION ROYALTIES - Generated when music is used in connection with visual images such as films, television programs, television commercials and video games MECHANICAL ROYALTIES - Generated through the sale of music in physical formats such as CD’s and DVD’s or digital formats through download services like iTunes.

T. 01684 571 255 E. enquiries@blackfinch.com www.blackfinch.com

Our television distribution companies sell the broadcast rights for television programmes on behalf of producers. The companies acquire the distribution rights for those television programmes by advancing money to the television producer which is recovered in first position, along with sales commission and expenses from the sales of the programme to international broadcasters who license those rights.

EIS Yearbook 2016/17

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EIS Open

Now

Close

Evergreen

Amount to be Raised: N/A Minimum Investment: £25,000

Seneca EIS Portfolio Service The Seneca EIS Portfolio Service is an evergreen discretionary management service that offers investors the opportunity to build a portfolio of equity investments in UK based SMEs, which are seeking an injection of capital to fund their next phase of growth.

The Service gives investors a portfolio of 4-6 investments per year diversified by sector. It targets investment returns of £1.60 to £1.80 per £1 invested (excluding tax reliefs). The EIS Service totals over £34m and has completed 45 investment rounds across 28 companies. 13 companies in the portfolio service are already AIM listed providing liquidity, market pricing and exit visibility for investors.

The Portfolio Manager, Seneca Partners, is part of the wider Seneca business, which has c. £450m invested assets and over £4bn debt under advice.

T. 020 7071 3926 E. seneca@lgbrtax.com www.lgbrcapital.com

EIS Open

04/01/16

SEIS Close

30/04/16

Amount to be Raised: £15m

T. 0330 223 1430 E. talong@merciafund.co.uk www.merciafund.co.uk

EIS

SEIS

Open

Close

August 2012

Evergreen

Amount to be Raised: N/A

The knowledge, experience and pedigree of Seneca’s investment team, combined with their individual track records of successful investing in the SME sector, is complimented by an extensive deal flow network in the UK’s SME heartlands of northern England and the West Midlands.

Mercia Fund Management - Mercia Growth Fund 5 Mercia Growth Fund 5 is a tax efficient technology fund optimised to source, support and scale UK growth enterprise across key sectors in which deep expertise is held. The Fund aims to provide investors with access to a portfolio of high growth opportunities in pioneering technology driven businesses combined with a risk managed investment strategy and attractive tax advantages.

At the heart of the Fund strategy lies Mercia’s ‘Complete Capital’ model, designed to provide fledgling technology businesses with a single investment partner solution, in addition to a sector specialist investment team, proprietary deal flow sources including partnerships with 14 universities and a strategic focus on the Midlands, the North and Scotland.

Oxford Technology EIS/SEIS Fund Oxford Technology has specialised in investing in high risk/high potential return technology start-ups since 1983. OT(S)EIS is fund no 14, and remains open for investment at any time. Investors end up with a portfolio of SEIS and EIS investments after 36 months.

The SEIS scheme transforms the economics of investing in start-ups. The losses on those which fail are greatly reduced. The gains on those that succeed are tax free. They key to success is to take real risk and to make large gains on the successes.

To date we have made 24 investments and have had two failures (there will surely be more in due course). But the losses on the failures, after tax reliefs are only £12,300 and £21,000. So far we have had three successes (there will surely be more) and the net gains on these (only on paper so far) are >£3.2m after tax reliefs.

T. 01865 784466 E. lucius@oxfordtechnology.com www.oxfordtechnology.com

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EIS Yearbook 2016/17

Our quarterly report, which gives a page of information on each of the investments may be downloaded from www.oxfordtechnology.com. Investors email to say how much they like this. Min investment £15,000. No initial fee. 3% introductory fee to IFAs. Man. fee 2% pa for 3 years, then 1.5% pa accrued. 0.35% pa custodian fee. 20% performance fee after hurdle achieved. Full details in IM, also downloadable.

Open Offers

SEIS Open

17/01/2014

Close

N/A

Amount to be Raised: £1.7m Minimum Investment: £25,000

Blackfinch Seed EIS Music Portfolios The Blackfinch SEIS Music Portfolios is a discretionary managed portfolio service that uses our market position and expertise to provide compelling investment opportunities that meet the strict SEIS investment criteria. Our portfolios provide investors with an attractive opportunity to invest in a range of companies which will fund the recording of new albums.

This will enable investors to participate directly in the success of individual recording artists, with the distribution of their albums being provided by the major record labels (Sony, Universal Music and Warner Bros.). Blackfinch has been established in the UK investment market for over 20 years. Our expertise and size have enabled us to forge strong relationships with specialist partners operating in business areas that qualify for SEIS. Our portfolios access management teams and industry experts with a wealth of experience in the UK music industry. This provides access to high quality deal-flow and enables us to create attractive and diversified portfolios that offer the best returns, whilst inherently mitigating risk.

T. 01684 571 255 E. enquiries@blackfinch.com www.blackfinch.com

SEIS Open

01/07/2015

Close

N/A

Amount to be Raised: Uncapped

The UK is one of the biggest producers of new recorded music in the world.

Over recent decades British artists have been consistently successful, both at home and abroad. That success is founded on continued investment into new artists and new albums. The changing landscape of the industry means that many of the major record labels (Universal Music, Sony and Warner Bros; together, the “Majors”) are using their funds to sign fewer artists for more money and that aggregate Artists and Repertoire (“A&R”) budgets continue to shrink. This leaves a gap in the market for artists who are not being contracted directly to the Majors to develop albums of their own for more modest amounts of money in a more efficient way.

The Deepbridge Life Sciences SEIS The Deepbridge Life Sciences SEIS is an opportunity to secure potentially attractive returns by investing in a diversified portfolio of early-stage life science companies, whilst taking advantage of the considerable income tax, capital gains tax, and inheritance tax benefits available under the Seed Enterprise Investment Scheme.

The Deepbridge Life Sciences SEIS seeks to fund companies with exciting new technologies that satisfy the needs of large and growing markets. The overarching focus of the Deepbridge Life Sciences SEIS offers investors companies engaged in the development of therapeutics for the following areas: • Anti-viral drug discovery and development • Antibiotic drug discovery and development • Neurodegenerative disease therapeutics • Cancer diagnostics and therapeautics • Autoimmune and other metabolic disorders therapies The target return for the Deepbridge Life Sciences SEIS is >35% over a minimum of five years;

T. 01244 746000 www.deepbridgecapital.com

representing mid-case capital growth of 250p returned for every 100p invested. To ensure maximum tax efficiency for the investor, the Deepbridge Life Sciences SEIS is entirely investor-fee free at point of investment.

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SEIS Open

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Now

Multiple

Amount to be Raised: £2.1m Minimum Investment: £10,000

Start-Up Series SEIS Fund One Invest in a portfolio of SEIS start-ups, selected through a series of competitions searching for the brightest entrepreneurs with the smartest ideas.

The Start-Up Series is a competition to search for great new consumer businesses - those creating products & services we buy and the ways that we buy them. The Series is promoted in partnership with startups.co.uk, the ‘goto’ place for advice for new businesses, with over 400,000 unique visitors each month. Worth Capital’s distillation and due diligence process aims to select 12 businesses over 12 months, to each qualify for up to £150,000 in SEIS funding, with a further £300,000 of the fund reserved for discretionary investments.

Amersham Investment Management have created the Start-Up Series SEIS Fund One to allow investors to invest in winning businesses.

The Start-Up Series competition reach is designed to produce a high volume of businesses to consider Sophisticated distillation methods to search among these for the brightest entrepreneurs with the smartest ideas Continued expert oversight from an investor director appointed to each startup portfolio company

T. 0207 428 6006 E. info@worthcapital.uk www.worthcapital.uk

IHT Open

June 2013

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Open-ended

Amount to be Raised: Unlimited

Multiple SEIS investments to create a tax efficient and diversified portfolio for qualifying investors

PUMA INVESTMENTS - PUMA HERITAGE Puma Heritage’s core focus is on secured lending. Its primary objectives are to preserve capital and mitigate risk.

Strategy: Conservative trading strategy focused on secured lending.

Flexibility: Choice of income or growth shares and ability to switch between them.

Experienced Adviser: Puma Heritage has appointed Puma Investments as its trading adviser.

Aligned Interests: The interests of Puma Investments (the trading adviser) and Shareholders are entirely aligned: Puma Investments will not receive any performance fees and its annual advisory fees are only paid in full if the minimum target annual return is paid in full.

Liquidity: Twice yearly opportunity to access capital (subject to terms set out in the Prospectus).

Subscription Amount: Minimum subscription of £25,000 with no maximum.

Inheritance Tax: It is intended that a subscription for shares in Puma Heritage will benefit from relief from Inheritance Tax provided the shares have been held for at least 2 years prior to and at the point of death and depending on individual circumstances.

T. 020 7408 4070 E. info@pumainvestments.co.uk www.pumainvestments.co.uk

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This is an advertisement only. A copy of the Prospectus is available on Puma Investments’ website.

Investors should not subscribe for shares in Puma Heritage Plc except on the basis of information in the Prospectus.

Open Offers

IHT Open

October 2014

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Open-ended

Amount to be Raised: Unlimited

PUMA INVESTMENTS - PUMA AIM INHERITANCE TAX SERVICE Puma AIM Inheritance Tax Service is a discretionary service that seeks to mitigate Inheritance Tax by investing in a carefully selected portfolio of AIM shares. The Puma AIM Inheritance Tax Service is also available in ISAs. Portfolio Service: A discretionary portfolio service that seeks to deliver long term growth focusing on quality companies listed on AIM. Inheritance Tax: It is intended that investors will benefit from relief from Inheritance Tax provided investments are held for at least 2 years prior to and at the point of death and depending on individual circumstances.

Minimum subscription of £15,000 with no maximum.

T. 020 7408 4070 E. info@pumainvestments.co.uk www.pumainvestments.co.uk

BPR Open

01/07/2015

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N/A

Amount to be Raised: Uncapped

Available in ISAs: Whilst ISAs can be extremely tax efficient during the holder’s lifetime, upon death ISA balances may be subject to a 40% IHT liability. Investing in a portfolio of qualifying AIM stocks gives holders the opportunity to mitigate Inheritance Tax while still retaining the benefits of an ISA. ISA Transfers can be accepted from existing providers as well as new investments.

Deepbridge IHT Service The Deepbridge IHT Service is designed to deliver capital preservation from a portfolio of Business Relief qualifying renewable energy companies that seek to have a high degree of asset-backing and a business model based on the Renewables Obligation, the UK Government subsidies for the generation of renewable energy. Utilising Business Relief, subscriptions may be eligible for exemption from IHT after a minimum of two years.

The Deepbridge IHT Service has a target priority return of 6% per annum after the second year.

Investment criteria: • Attractive subsidies: The UK Government offers subsidies to the renewable energy sector, including Renewable Obligation Certificates and Feed-inTariffs.

T. 01244 746000 www.deepbridgecapital.com

BPR Open

Now

Close

Evergreen

Minimum Investment: £25,000

• No planning risk: Investments will be made in projects with all the necessary permissions in place, providing a known cost base for the investment.

• Proven technology: The use of proven renewable energy technologies that allow levels of energy production to be forecast with a good level of accuracy.

Guinness Sustainable Infrastructure Service The Guinness Sustainable Infrastructure Service has been launched to help investors pass more of their wealth onto their family. The Service has no initial fee for advised clients and will make investments into companies that qualify for Business Property Relief.

Investee companies will own and operate sustainable energy projects, with an initial focus on rooftop solar photovoltaic installations. These projects have strong visibility of revenues that are usually index-linked.

• Focus on capital preservation and targeting a minimum 5 per cent per annum return for investors • There are no initial fees for advised investors • Regular share redemption opportunities available

T. 020 7222 3475 E. eis@guinnessfunds.com www.guinnessfunds.com

• Redemptions may be made after the first 12 months • Once held for two years, BPR qualifying investments fall outside an investor’s estate of IHT purposes.

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Open Offers

BPR Open

Close

Evergreen

Evergreen

Amount to be Raised: Unlimited

TIME:Advance TIME:Advance is a discretionary management service that allows investors to access Business Property Relief (BPR) to mitigate their Inheritance Tax (IHT) liabilities. The service offers 100% IHT relief in just two years, alongside a targeted return of 3.5% per annum. Importantly clients retain access and control, so have the option to withdraw a lump sum or set up regular withdrawals in the form of an income.

The service focuses on capital preservation by investing in asset backed businesses with no debt which qualify for BPR. These businesses include secured lending, renewable energy, biomass and self-storage. The product is managed by an expert team, with a proven 20 year track record of 100% success in achieving BPR for investors.

T. 020 7391 4747 E. questions@time-investments.com www.time-investments.com

BPR Open

Close

Evergreen

Evergreen

Amount to be Raised: Unlimited

TIME: CTC (Corporate Trading Companies) TIME:CTC is a bespoke Inheritance Tax (IHT) solution for corporate investors, which boasts an impressive 20 year track record of delivering IHT relief for investors. TIME:CTC is aimed at business owners who have built up surplus cash in their business and could potentially lose Business Property Relief (BPR).

The focus of TIME:CTC is on capital preservation by investing in asset backed businesses which qualify for BPR. These businesses include secured lending, renewable energy, biomass and self-storage. Our strategy allows business owners to maintain control of their assets, avoiding the need for trusts or gifting to obtain relief.

T. 020 7391 4747 E. questions@time-investments.com www.time-investments.com

BPR Open

Evergreen

Close

Evergreen

Amount to be Raised: N/A Minimum Investment: £25,000

T. 01865 860 760 E. investment@oxcp.com www.oxcp.com

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Targeting a return of 3.5% and potentially immediate reinstatement of BPR qualifying assets. To date more than 500 of our clients have already achieved BPR on their investments, a 100% success rate.

Oxford Capital Estate Planning Service The Oxford Capital Estate Planning Service can help investors mitigate Inheritance Tax by investing in companies that should qualify for Business Property Relief, subject to the requisite holding period.

Clients can choose from five different investment options, depending on their preference for capital growth or dividend income. If a client’s circumstances change, they can elect to switch to an alternative investment option. Target returns range from 3% to 5% p.a., and capital can be accessed within 1-6 months through the sale of shares.

Investors in the Estate Planning Service will acquire shares in unquoted holding companies. Managed by Oxford Capital’s infrastructure investment team, these companies will make equity investments in, and loans to, companies which in turn will own and operate revenue-generating assets. The investment strategy is currently focused on small-scale power generating equipment, including renewable energy assets. Over time, it is possible that other assets will be added to the portfolio.

I FAM AGAZINE.CO M

E I S M A G A ZI N E . C O M

FA NAT IC D E S I GN . C O. UK