EIS Industry Report 2019/20

55 54 EIS SOLUTIONS COMPARISON BLACKFINCH VENTURES EIS PORTFOLIOS DEEPBRIDGE TECHNOLOGY GROWTH EIS SENECA EIS PORTFOLIO SERVICE MANAGER NAME Blackfinch Group Deepbridge Advisers (investment adviser) Enterprise Investment Partners (investment manager) Seneca Partners Ltd OFFER DESCRIPTION The portfolios target high-growth opportunities, investing in innovative start-ups and early stage businesses. They bring access to EIS tax benefits, and prospects for significant returns. The team focuses on firms often offering smart technology, supporting them from development to exit. Blackfinch capital is invested alongside investor funds The Deepbridge Technology Growth EIS is a technology-focused EIS proposition, which provides subscribers with an opportunity to participate in a portfolio of actively-managed growth-focused technology companies, taking advantage of the potential tax reliefs available under EIS. A diversi ed portfolio of actively managed growth-focused companies seeking commercialisation funding, the Deepbridge EIS invests in technology growth companies that have a proven technology, robust intellectual property and are operating in a high growth market sector An Evergreen Discretionary Growth Capital Investment Service that builds each investor their own portfolio of 4-6 EIS qualifying investments in unquoted and AIM quoted companies. It targets a return of £1.60-£1.80p per £1 invested excluding any tax reliefs within 5 years AUM (TOT) / AUM (EIS) £321m/£51m £150m / £115m £151.2m / £80.8m YEAR FOUNDED 1992 2010 2010 UNDERLYING ASSETS 6 early-stage disruptive technology companies in sectors including EdTech, Wearables, SaaS, AI and Consumer Electronics Post-revenue, highly disruptive technology innovation Unquoted and AIM quoted shares TARGET NO. OF HOLDINGS Multi-sector portfolio of ten or more investee firms Between 5 and 10 4-6 LAUNCH DATE 2018 2013 1/12/2012 TARGET FUNDRAISE Evergreen Evergreen Evergreen INVESTMENT OBJECTIVE Targeting 3x return on investments To generate substantial tax-ef cient mid-case capital growth of 160p for every 100p invested, over a 3-5 year period To generate tax free income and capital growth over the longer term TARGET ANNUAL RETURN N/A N/A 1.6x to 1.8x over 5 to 6 years (excluding tax reliefs) INVESTMENT HORIZON (WHERE STATED) 4-7 years 3-5 years 4-6 years MIN INVESTMENT £10,000 £10,000 £25,000 (initial), £5,000 (subsequent) FEES INITIAL 3% portfolio establishment fee (after deduction of adviser fees) There are no manager charges levied on the investor at the point of investment for advised subscriptions received by a financial adviser, Deepbridge fees are borne by the investee companies and are disclosed in the Information Memorandum 2.5% + VAT AMC AMC equivalent to 2% of capital invested, applied for first four years only (max 8%), charged to portfolio companies. This means investors should receive tax relief on the entire amount invested into the companies and the fees charged to the companies, thereby adding significant value See above 2% + VAT OTHER FEES Performance fee of up to a 20% share of returns exceeding £1.30 for every £1.00 invested (ignoring tax reliefs), calculated on an individual company basis. Blackfinch can also recover reasonable expenses and reserves the right to charge arrangement, monitoring, director and exit fees to each investee company Performance fee: an incentive fee of 20% of cash returned, in excess of 120% of the funds invested Performance Fee 20% + VAT*, Custodian's Admin Fee of £55 p.a. * Higher fee applies for exits before 4th anniversary PROVIDER DIRECTORY BLACKFINCH INVESTMENTS www.blackfinch.com 07885 898374 g.pugh@blackfinch.com SENECA www.investing.senecapartners.co.uk 01942 271746 enquiries@senecapartners.co.uk DEEPBRIDGE www.deepbridgecapital.com 01244 746000 enquiries@deepbridgecapital.com