SEIS & EIS Fund
The new fund is a combined SEIS & EIS structure which is designed to provide increased diversification as a portfolio investment. The balance between capital growth, portfolio risk and time horizon is maximised, whilst enhancing the tax advantages available. Our offering allows investors to choose whether they want to invest solely via SEIS or EIS or to split their funds across SEIS and EIS investments. Generally the EIS funds will be invested later into the companies and therefore will benefit from investing in slightly more mature companies.
|Fund Structure ||Complying EIS Fund (non-MiFID, non-UCIS)|
|Target Size||£5 million in respect of the 2017/18 tranche|
£10,000 and multiples of £1,000 thereafter up to a maximum of £100,000 in SEIS and up to £1 million in EIS
|Minimum Fund Size||£1 million in respect of the 2017/18 tranche|
|Sector Focus||Diversified Sector|
|Fund Manager||Thompson Taraz Managers Limited|
|Minimum Portfolio Size|
10 SEIS companies (unless otherwise agreed by an Investor in their Application Form). Target of 5 companies if an investor requests 100% in EIS Qualifying Companies
|Investment Period||The 2017/2018 tranche opened on 6th April 2017 with rolling closes thereafter at the discretion of the Fund Manager.|
|Target Close Date||Rolling |
Investee Companies will be selected on the basis of an overall target exit consideration for the Fund of 185p for every 100p invested gross of tax reliefs within five years to seven years.
NB: Potential exits are contingent upon a successful fundraise and implementation of the business plan.
Potential dividend income will be paid as and when it a rises from the investments. However, given the nature of investments they are more likely to invest profits in growing their business to an exit rather than in dividends.
If an investor wished to sell their holding early then the Fund Manager would try to facilitate this via the other SEIS/EIS investors but investors need to consider this a long-term investment.
Investment Initial Fee
When the Fund Manager makes an investment in an Investee Company, Jenson (on behalf of the Fund Manager) will charge the Investee Company an initial investment fee of up to 7.5% of the amount invested. From this investment fee, Jenson will settle any agreed commission or payments to facilitate adviser charges by an Investor’s Financial Intermediary if they have one.
Fund Administration Fee
The Fund will have certain direct operating costs, such as tax, legal, compliance, audit and administration and custodian fees. The Fund Manager will provide Investors with regular information on the performance of their Investments including quarterly updates and six- monthly valuations and statements electronically.
To pay for these services, Jenson will charge each Investee Company an annual administration charge at the rate of £250 per calendar month plus VAT. Jenson may also provide each Investee Company with operational and accounting support covering such matters as financial reporting, business planning, financial modelling, debt fund raising, business management and general deal management (whether in relation to the initial Investment or otherwise) and may charge additional fees to the Investee Companies for these services.
High growth deal flow should come from Jenson Solutions’ existing relationships with professional advisers, business angels, non-executive directors and extensive contacts.
Early stage high growth companies provide an attractive sector that is currently poorly served by mainstream venture capital.
The Fund will focus on businesses already achieving revenues or close to revenues and are now looking to develop the business on the back of early traction in their market.
Additional financial and operational support to investee companies can help them grow and develop more effectively.
Attractive tax benefits for investors.
Tax Disclaimer: Please note tax treatment depends on the individual circumstances of each client and may be subject to change in the future.
What kind of companies will the Fund invest in?
While the Fund will aim to have breadth with regard to the sector and industry of its Investments, Jenson will seek to identify prospective Investee Companies and assess their potential based on the following five key criteria:
- Business momentum;
- Business concept and strategy;
- Management team credibility;
- Business and financial risks; and
- Equity deal and exit expectations.
Jenson intends that all Investee Companies will qualify for relief as SEIS Qualifying Companies and/or EIS Qualifying Companies for the purposes of obtaining Tax Reliefs.