Growth EIS Fund Overview
The Oxford Capital Growth EIS is intended for investors who want to achieve capital growth (rather than income) by investing in a portfolio of small, unquoted companies, which have the potential to increase in value significantly.
|Fund Structure ||Complying EIS Fund (non-MiFID, non-UCIS)|
Small businesses that are solving commercial, technological or scientific problems in innovative ways.
|Fund Manager||Tom Bradley, Oxford Capital.|
|Minimum Portfolio Size|
They will typically use your subscription to build a portfolio of 12-15 unquoted companies.
|Target Close Date||Rolling |
On average, they aim to return to investors 2.0x the amount they invested. This target is stated after the impact of all fees but does not include the impact of any tax reliefs that may apply.
It is important to note that the performance of unquoted investments in smaller companies is unpredictable. Some companies may produce significant returns, whilst others are likely to fail. The overall return from a portfolio can vary significantly.
This is an illiquid investment. Once invested, your capital is returned only when they are able to sell the underlying investments.
They aim to exit most investments within 5-7 years.
They may hold investments for longer if they consider that more value could be returned to investors by doing so. Similarly, investments may not be held for the three-year EIS-qualifying period if a suitable exit opportunity occurs sooner or if the company fails.
Speed of Investment
It will normally take between 12 and 18 months for your subscription to be fully invested into a portfolio of companies. However, they do not set a target for speed of investment. Their top priority is finding suitable investment opportunities, and it is possible that they might take longer than 18 months to build your portfolio. This would delay the availability of EIS reliefs.
They collect an initial fee of 2.5% of your net subscription. An annual management fee of 2% of your net subscription will be charged quarterly. If the value of the companies held in your portfolio decreases below the net subscription amount, they will decrease their annual management charge commensurately. However, their annual management charge does not increase if the value of your investments exceeds your net subscription. Please see the Investment Management Agreement for details.
They will collect a performance fee of 20% of the net profit achieved by your portfolio. They only start collecting their performance fee when they have distributed to you at least 100% of your original net subscription.
If you are a UK investor you may be able to benefit from tax advantages, including 30% income tax relief.
An Investor should be aware that SEIS or EIS Tax Relief and Capital Gains Tax Reinvestment Relief is only available on the amount actually invested on his or her behalf in Qualifying Companies, not on the total amount of his or her Commitment to the Fund.
Taxation treatment depends on the individual circumstances of the Investor and may change in the future.
They aim to invest in small businesses that are solving commercial, technological or scientific problems in innovative ways.
When selecting new investments, they look for companies that exhibit high- growth characteristics or potential. These characteristics might include –
Credible, talented and highly- driven entrepreneurs, founders and management teams.
Differentiated products or services.
Potential for international growth, reducing the company’s dependence on a single economic market.
Large, fast-growing or uncontested markets.
Business models that do not depend on extensive capital expenditure.
A clear future exit route – for example, a number of large, acquisitive companies operating in a similar
or related industry sector.
The companies in their existing portfolio operate in sectors such as software, consumer internet, digital media and healthcare.
An investment in the Fund is subject to a number of risks given the nature of the private companies targeted. Before making any investment decision, prospective Investors should consider carefully the risks attaching to an investment in the Fund together with fully reviewing all other information contained in this document, including, in particular, the risk factors described below. This information does not purport to be exhaustive.
- Tax legislation can change and depends on personal circumstances.
- Your capital is at risk and you may not get back the amount invested. - You should not invest if you are likely to require the capital in the near term.
- Past performance is not a reliable indicator of future performance.
Any stated returns are for illustrative purposes only and no forecast (guaranteed or otherwise) is implied or should be inferred.
- EIS relief depends on the investee company maintaining its qualifying status.
- Investing in start-ups and early stage businesses involves risks and should be done only as part of a diversified portfolio.