EIS 2018 report (web)

73 72 ABOUT THE MANAGER Ingenious is an investment company providing unique and exciting non correlated opportunities to individuals, corporates, family offices and institutions across three unique and diversified sectors: media, infrastructure and real estate. Since our inception in 1998, clients have trusted us with over £9 billion, which we have deployed across our range of carefully- designed investment strategies. We pride ourselves on our ability to find the hidden angle, identifying innovative investment opportunities within these sectors which are uncorrelated to the stock market, have reliable cash flows and are complementary to our investors’ portfolios. Sector knowledge is at the core of our investment philosophy and our investment teams are comprised of sector specialists with experience operating and managing businesses within these sectors, in-turn mitigating risk and maximising returns for our investors. Our investment teams operate within a robust professional framework with expertise spanning across accountancy, tax, law and compliance. We build strategic partnerships with our investors and their advisers, working together to understand individual financial objectives and consistently providing compelling solutions which meet these as they evolve. OUR INFRASTRUCTURE VENTURES EIS OFFER Ingenious Infrastructure has utilised its significant expertise and experience in the infrastructure sector to create a unique and compelling investment opportunity where investors can access the benefits of the Enterprise Investment Scheme (EIS). Ingenious Infrastructure Ventures EIS is a discretionary managed portfolio service (the “Service”) that seeks to invest in early stage and growth-capital stage companies operating in the infrastructure sector, in the UK and other OECD countries. The Service targets investment opportunities in companies that have at a minimum completed a proof of concept and are well placed to take advantage of growth trends within the infrastructure sector focusing particularly on (i) low carbon transport, (ii) digital communications, (iii) energy management and (iv) resource efficiency, among others. Investors’ risk will be effectively managed through a combination of Ingenious Infrastructure’s expert management team, with significant experience of investing in the infrastructure sector, and diversification by investing in a portfolio of companies operating in key infrastructure sub-sectors. The Service will also utilise Ingenious’ wider professional infrastructure to deliver value while mitigating downside risks. The service is targeting a portfolio return of £1.25 per £1.00 invested 1 over an investment horizon of 4 – 6 years and the minimum subscription amount is £10,000. INGENIOUS 1 Net of all fees and net of EIS Income Tax Relief. 2 This information is provided as an example investment opportunity and may or may not be included in the Service. Digital infrastructure is a key driver of productivity and economic growth, however the existing, copper-based, digital communications network that provides many homes around the UK with basic broadband services is quickly becoming obsolete. The roll-out of ultrafast fibre-optic networks is therefore necessary to provide UK communities with access to the high-performance broadband services they require, many of which are greatly underserved by the existing infrastructure. As set out in the UK Digital Strategy (March 2017), HM Government is committed to supporting “full-fibre” connectivity with a vision to achieve “Gigabit” (1000Mbps) download speeds. To promote this, the Government is investing £400 million in the Digital Infrastructure Investment Fund, which is expected to at least be matched by the private sector to attract investment of over £1billion for full-fibre broadband. The Manager has identified a potential Investee Company that seeks to develop, own and operate fibre-optic networks in geographic areas that currently do not have access to ultrafast broadband services and to establish a monopoly in such areas. The business will continue to operate the fibre-optic networks and will generate revenue from the provision of broadband services to residential customers 2 . INVESTMENT CASE STUDY JENSON FUNDING PARTNERS ABOUT THE MANAGER Jenson Funding Partners (JFP) was established in 2012 to source investment for young companies working with Jenson Solutions (JS), our sister Finance Director Business. The ethos of JFP is that we firmly believe early stage investing is a hands on process and requires us to remain actively engaged post investing. Each Investee Company has access to our Jenson support programme which includes an allocated Jenson director. The support programme helps in areas such as Accounting and Finance, Technology, Sales and Marketing and Corporate Governance. It is only by nurturing the investee companies through their growth curve that we can achieve financial success for the Jenson SEIS and EIS Fund (the Fund). To date, we have actively advised entrepreneurs to re-evaluate their business models, reduce projected costs and have introduced executives, partners, customers and suppliers as part of the value added service we provide. Investors therefore not only benefit from the significant tax benefits, but also Jenson’s integrated approach to the support of the Fund’s Investments. ABOUT THE FUND The Fund has a mandate to focus on long-term capital growth that enables private investors to access a researched range of committed and ambitious entrepreneurs and their early stage companies. The SEIS element of the fund targets exciting new innovative and disruptive technologies across multiple sectors. The EIS element provides follow on investment to fully exploit commercialization of a proven investee company business model within the SEIS portfolio and in addition, externally sourced opportunities; at an earlier stage than VC or Private Equity (please see below diagram). Being a generalist fund it is sector agnostic and the type of businesses and opportunities can be anything that is SEIS/EIS compliant. The specific focus of the fund is to target companies with: a strong management team, momentum in the business and a commitment to growth. The Fund runs a significant due diligence process which means on average, only four out of every 100 opportunities receive investment. INVESTMENT CASE STUDY The case for investment in agency:2 was compelling and straightforward. They were a successful, growing social media agency that wanted to invest in creating a technology platform, the Social Insight Engine (“SIE”), that would provide real intellectual property and a unique selling point for their business. The investment committee liked the sector, the opportunity to invest early in a potential sector changing tool working alongside a team that we believed could execute the outlined strategy. Since investing, The Social Insight Engine (“SIE”) launched in 2015; the business has doubled in size every year and by the end of 2016 had revenues of over £2m. The team continues to grow in size and scope and new client wins mean that the exponential growth looks set to continue in 2018. The business has won a number of awards such as Deloitte Top 50 Fast Tech Growth Winner in 2016 and Shorty Award ‘Best Use of Facebook’ Winner in 2017. EIS INVESTING IN THE FUNDING GAP VALUATION CAPITAL COMMITMENTS EIS OPPORTUNITY INDIVIDUAL ANGELS SEIS EARLY STAGE VC TRADITIONAL SEIS FUNDS Ingenious is a trading name of Ingenious Capital Management Limited, which is authorised and regulated by the Financial Conduct Authority under Firm’s Reference Number 562563. The value of an investment may go down as well as up and investors may not get back the full amount invested. Tax treatment depends on the individual circumstances of each client and may be subject to change in future.