EIS Industry Report 2018/19

75 74 EIS SOLUTIONS COMPARISON EIS SOLUTIONS COMPARISON BLACKFINCH DEEPBRIDGE DOWNING INGENIOUS MANAGER NAME Blackfinch Group Deepbridge Advisers Ltd as Investment Adviser, Enterprise Investment Partners LLP as Investment Manager Downing LLP Ingenious Capital Management Limited OFFER NAME Blackfinch Ventures EIS Portfolios Deepbridge Technology Growth EIS Downing Ventures EIS Ingenious Play EIS OFFER DESCRIPTION The Blackfinch Ventures EIS Portfolios target high- growth opportunities, investing across sectors in innovative start-ups and early stage businesses. The portfolios bring access to EIS tax benefits, and prospects for significant returns. The expert team focuses on disruptive firms often offering smart technology. The ethos is that EIS funding, and active business support from development to exit, can fuel growth. Blackfinch capital is invested alongside investor funds, ensuring alignment of interests. 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. Downing Ventures EIS invests in high-risk, high potential return opportunities, focusing on early-stage UK technology companies in a broad range of sectors, including enterprise software, health technology and e-commerce. In return, investors can access attractive tax reliefs, including 30% income tax relief in the current and previous tax year (via carryback). Ingenious Play EIS aims to achieve high investment returns for investors and creates value by investing in early stage growth companies in the video games industry. There is a particular focus on backing companies run by entrepreneurial individuals with a successful track record in the industry that will develop, exploit and distribute globally high quality and commercially attractive video game titles across mobile, PC and console platforms. AUM (TOT) / AUM (EIS) £280m / £46m £120m / £85m Over £1bn / over £200m £833.5m YEAR FOUNDED 2013 2010 1986 1998 UNDERLYING ASSETS N/A Post-revenue, highly disruptive technology innovation Current portfolio holdings as at 1 November 2018 - enterprise software (42%), e-commerce (13%), consumer (11%), marketing tech (11%), life sciences (9%), digital health (7%), education (7%). Intellectual Property TARGET NO. OF HOLDINGS Multi-sector portfolio of ten or more investee firms Between 5 and 10 10 - 15 companies, across a variety of sectors. 8-10 investee companies LAUNCH DATE 2018 2013 2013 09 July 18 TARGET FUNDRAISE Evergreen Evergreen Evergreen Evergreen INVESTMENT OBJECTIVE Targeting 5x 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. Focus on technology companies looking for development and growth funding in sectors including enterprise software, health technology and e-commerce and special situations technology. Capital growth TARGET ANNUAL RETURN N/A N/A N/A N/A INVESTMENT HORIZON (WHERE STATED) 4 to 7 years 3 to 5 years 4 to 8 years At least 5 years MIN INVESTMENT £10,000 £10,000 £15,000 £10,000 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, resulting in up to 100% allocation of subscription. This ensures up to 100% tax efficiency for investors. 2% for advised clients 2.75% 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. There are no manager charges levied on the investor at the point of investment for advised subscriptions received by a financial adviser, resulting in up to 100% allocation of subscription. This ensures up to 100% tax efficiency for investors. 2% ongoing for advised clients 2% 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. Please see the Information Memorandum for full details on fees. A 20% performance fee on the exit proceeds between £1.00 and £1.10 and 30% thereafter (in respect of each £1.00 invested). In lieu of 2% per annum payable by the investor AMC for a period not exceeding 6 months from subscription deadline, a charge of up to 1% payable by the investor will apply to undeployed funds. Initial depositary fee of 0.075% of the aggregate subscriptions is payable by the investor to the depositary. An initial custodian Fee of £25 per investor. Investee companies may be charged an arrangement fee of up to 3% of the total capital invested.