EIS - Measuring Performance

One of the biggest obstacles to investment in the EIS sector is the lack of independent, accurate performance information. Without this information advisers and investors are putting their money in a blind pool and trusting that the manager will be able to produce the kind of performance they are promising, but with no verifiable track record to assess the veracity of their claims.

At the moment, most managers are prepared to share some top level information: how much money they have under management, how much they have deployed and how many deals they have done. It’s also very common to come across case studies of underlying businesses that have been invested in, which bring some life and colour to the abstract investment process – and of course show EIS investing in a very favourable light.

This cherry-picking of information to share does not give investors the accurate picture they need to make systematic, objective judgements.

Key Learning Outcomes

  • How to create the Holy Grail of EIS performance measurement
  • The reasons behind a reluctancy to share a certain level of detail
  • Why the lack of exits to date makes it difficult when measuring performance
  • Who is not obliged to provide as much detail about their performance?
  • How we can move forward from the current stalemate

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