EIS Industry Report 2018/19

73 72 SENECA SENECA EIS PORTFOLIO SERVICE ABOUT THE PROVIDER Seneca Partners is a specialist SME Investment and Corporate Advisory business based in the North of the UK. Our team of 70 comprises highly experienced professionals with backgrounds in corporate finance, private equity, stockbroking, accounting and banking with an extensive network of contacts and intermediaries. Seneca provide equity, debt and fully integrated corporate finance advice to businesses with an annual turnover of up to £100m, helping business owners to both finance their growth and also to realise value on exit either via trade sale, floatation or restructuring With over £750m of AUM across the various Seneca businesses, Seneca are long standing EIS and Private equity investors with a strong track record of value realisation for investors.The strength of relationships in the UK’s heartland areas provides high quality deal flow and importantly, timely deployment for investors with a geographical USP. OUR EIS PORTFOLIO SERVICE Our Evergreen Service invests growth capital in established rather than start up or very early stage businesses and has deployed c. £50m of investor subscriptions into more than 70 investment rounds across more than 40 companies during the last 5 years. The Service targets a return of £1.60-£1.80p per £1 invested excluding any tax reliefs within a 5 year period. Each investor will have a minimum spread of 4-6 companies for each year they invest and ordinarily will have a mix of private equity deals and AIM listed companies as part of their diversified allocation across a wide range of sectors. The Service remains open all year round and has made 8 exits to date with an average return of 2.62x before (before fees). £20,000,000 £30,000,000 £40,000,000 £50,000,000 £60,000,000 £10,000,000 £0 2013 2014 2015 2016 2017 2018 FUNDRAISING INVESTMENT CASE STUDY: ROCKAR Seneca invested £1m of EIS growth capital into Rockar in August 2014, to facilitate a retail rollout and further development and enhancement of its market leading ecommerce software platform. The business, the first of its kind in the auto industry, allows customers to research, test-drive, purchase and service a new car without sales team involvement. The expansion plans have subsequently been supported through a £5m funding round in July 2016, at significantly enhanced valuation to Seneca’s entry point, with two established VCT managers investing via a process led by the Seneca Corporate Finance team. This has enabled the business to partner with additional car manufacturers who are now using Rockar’s market leading software solution to launch their own online car retail solution and the management team remain very optimistic about Rockar’s future prospects. Seneca have played an active advisory role since initial investment, supporting management with key strategic and commercial decisions. “The best EIS fund managers are those that can add strategic value and direction, without restricting entrepreneurial flair.” — JOHN DAVIES, SENECA PARTNERS TRIPLE POINT TRIPLE POINT IMPACT EIS SERVICE ABOUT TRIPLE POINT Triple Point is a provider of innovative investment solutions built around the needs of private, institutional and public investors. We match investor’s needs with the needs of growing businesses, helping public and private sector organisations, and supporting UK growth and investment. Triple Point offers a range of investment strategies across asset classes, including venture capital, real estate, energy and infrastructure, public and private leasing, and private debt. We set out to create lasting relationships that deliver value to all counterparties that we deal with. Over the last decade, we have brought together a team of over 90 people with diverse skills and experience. As an alternative investment manager, we make more than just money for our clients; we create value. This value goes beyond simply delivering an excellent return on investment; it extends to the partnership we build and the integrity with which we conduct our business. TRIPLE POINT IMPACT EIS SERVICE The Triple Point Impact EIS Service targets significant capital growth and is designed to provide investors with a diversified portfolio of fast- growing, innovative companies that demonstrate significant social impact and qualify for EIS tax reliefs. The Service is targeting an initial raise of £10m with a minimum individual investment of £25,000. Financial returns are achieved by investing in 8-12 unlisted growth companies that are typically generating revenue and have the potential to provide a fast-growing capital return over an expected 4 to 7-year holding period. The Impact EIS Service invests in companies that make a significant positive contribution to one of four social themes. These include: Children & Young People, Environment, Health, and Inequality. Impact EIS is the latest in a series of products that go back to our inception in 2004. Over this time, more than £230m has been successfully returned to our VCT and EIS investors. CASE STUDY – SKIN ANALYTICS Melanoma is one of the world’s fastest growing types of cancer and every 2 minutes someone is diagnosed with it. The skin cancer pathway is one of the most resource constrained areas, and melanoma prevalence is most significant amongst disadvantaged sections of society and the elderly. Triple Point Impact EIS Service has recently made investments totalling £240,000 in Skin Analytics Ltd (‘SA’). Skin Analytics have developed an effective, low- cost diagnosis procedure that is simple to use by NHS and private healthcare professionals, as well as individual consumers. By providing dermatological quality digital images using artificial intelligence (‘AI’), we believe that SA will transform the speed and accuracy at which melanoma diagnoses are made; through this, SA has the ability to significantly increase the market it services and, in turn, its profitability. We believe Skin Analytics is an excellent example of an investment opportunity that meets our criteria of the potential for significant growth, Social Impact and EIS eligibility. “Advisers should not see Impact investing as a separate discipline, but as a profitable investment opportunity that also has a positive impact on society.” — BELINDA THOMAS, TRIPLE POINT