Alternate Investments Show Time | GBI 05 | October 2017 by Clifton Media Lab

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CONTENTS

CHAPTER • 1 Editor’s Welcome

Michael Wilson, Editor In Chief

News

A round up of industry news

CHAPTER • 2 The New Kids on the Block

An investment showcase bringing you the newest offerings from the sector

The Exiteers

Bringing you news of successful exits in the sector

Film Club

Training the lens on investments with movie star qualities

Patiently Waiting: The Impact of the Patient Capital Review

Annabel Brodie-Smith, Communications Director of the AIC, tells us Government’s review of patient capital is nothing to fear

Can Alternative Investments be an Alternative Form of Retirement Saving?

Will Laws, Senior Manager at Oxford Capital, argues the pros and cons for using VCTs and EIS as a retirement saving vehicle

Growth is the Only Game in Town

Ewoud Karelse, Head of Tax Advantaged Investments at Tilney, looks at how advisers can utilise VCTs in client portfolios

CHAPTER • 3 Open Offers

Our monthly listing of what’s currently available for subscription

GBI Magazine is published by IFA Magazine Publications Ltd, Arcade Chambers, 8 Kings Road, Bristol BS8 4AB

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Telephone: +44 (0) 1179 089686 Editor-in-Chief: Michael Wilson editor@ifamagazine.com City Editor: Neil Martin neil.martin@ifamagazine.com

Commissioning Editor: Michelle McGagh Publishing director: Alex Sullivan alex.sullivan@ifamagazine.com Design: The Wow Factory www.thewowfactory.co.uk

Full subscription details and eligibility criteria are available at www.gbinvestments.co.uk ©2017. All rights reserved. Full subscription details and eligibility criteria are available at www.gbinvestments.co.uk

GBI Magazine is for professional advisers only. GBI Magazine is a trademark of IFA Magazine Publications Limited. No part of this publication may be reproduced or stored in any printed or electronic retrieval system without prior permission. All material has been carefully checked for accuracy, but no responsibility can be accepted for inaccuracies, independent research and where necessary legal advice should be sought before acting on any information contained in this publication.

What do we mean by ‘government backed’? In the interests of clarity, any reference made by GB Investments to the point that EIS, VCTs and similar investments are government backed relates to the government’s general approval of these schemes, indicated by their having granted them highly tax advantaged status. The use of this term does not imply that government would in any way act in the capacity as a guarantor or backer of last resort in connection with such schemes.

SHOW TIME “The overture is about to start, you cross your fingers and hold your heart. It’s curtain time, and away we go. Another opening to another show…”

Yes, it’s that time of year again. Or rather, it isn’t. The last time we had an autumn Budget statement, it was just a final dress-rehearsal for the proper Budget, with plenty of room for last-minute kite-flying and flagpole-running. This year, however, it is the proper Budget. Which is going to be quite a test for Chancellor Philip Hammond, possibly the safest pair of hands in the government. Beset on all sides by Brexiteer critics who’d like to see him out of the leadership. Stumbling his way through the MiFID II soup which becomes law in two months’ time, even though we don’t entirely know what it actually says yet. And trying his best to balance an unbalanceable fiscal situation, with every kind of pressure upon him to raise taxes – ideally by stealth, so as not to upset the Conservative Party faithful. While all the time deciding what to do with the Patient Capital Review, which has got the front stalls and the dress boxes craning their necks for clues as to how the plot will develop. Will the orchestra’s shift into D sharp minor (“existential angst, hesitation, the dark night of the soul”) progress into F minor (“funereal, harrowing, grief-stricken”) or D major (“victorious, screaming hallelujahs”)? And will those dastardly Europeans try to knock the country’s brass section out of tune from far away across the Channel, the Johnsonites and the Moggites demand? Or will Britain’s risk investors be free once again to forget the fugue and enjoy the blissful, sunny green uplands of C major?

Key considerations We‘ll have a better idea on the 22 November, but for the moment the rest is all speculation. Yes, it seems likely that the Chancellor’s conclusions from the Patient Capital Review will result in a tightening of the rules on capital-rich EIS and VCT funds – or, at the very least on those investments which rely on cast-iron cashbacks to mitigate the risk element that really ought to be there in a tax-favoured risk environment. (Shouldn’t they?) But the mood has been lightening somewhat as Opening Night approaches. As Annabel Brodie-Smith from the Association of Investment Companies argues in this month’s GB Investments, the Treasury is well aware that small and fledgling company investment is one of the key drivers of growth and change; but, more importantly, the VCT sector also plugs a funding gap for SMEs that no

GB Investment Magazine · November 2017

other lending sector can do: the £2 million to £10 million area which is too big for individual investors but too small to interest the private equity people.

Strike up the band And that VCTs in particular are in there for the long term. Over half of VCT recipients have been getting VCT investment for over five years, and one in five for 10 years. Average staffing levels typically double after investment, and far from devouring resources, the government’s tax take from such companies increases exponentially. Best of all, this orchestra spends its life on tour. The area outside the South East accounts for nearly half of all VCT investments, Brodie-Smith says. And at a time when London’s Remainer drift from the Brexit north is still raising hackles, it may just help to provide a useful political bridge as well. Mr Hammond would be crazy to muffle the music now. Wouldn’t he?

Michael Wilson, Editor in Chief

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News

Kuber teams up with ‘angel’ Brendan Forster Kuber Ventures has partnered with angel investor and former board director of Carphone Warehouse Brendan Forster. Kuber says it was founded in order to modernise and make the EIS market more accessible; enabling individual and intermediary investors to build diversified portfolios into their financial planning propositions.

and subsequently Chairman) in Stonewood Group, which specialises in the design, manufacture and delivery of data encryption products and services. In June 2010 Stonewood was sold to US-listed ViaSat for £14 million. In addition to these successes, Forster retains

The plan is for Forster to work with Kuber’s Chief Executive Dermot Campbell (pictured right) and build the firm. Kuber said that Forster will lend his market knowledge, business strategy skills and personal network. Forster has also taken a material equity stake in Kuber. Forster was Carphone Warehouse’s first IT director from 1993 until 2005. He then built a position as the majority shareholder (CEO

a number of other active angel investments holding majority stakes and board positions in businesses ranging from tech startups, precision engineering specialists to niche recruitment businesses, as well as a portfolio of minority positions in other startups.

Forster said: ‘Wealth management as an industry is going through a period of unprecedented change and digitalisation is critical to every wealth managers future survival. Kuber has opened up tax efficient investing to more advisers and investors than ever before, achieving revenue growth to match this achievement. I have invested in, and partnered with Kuber, because I believe this is only the start. I will be working with Dermot to ensure that Kuber achieves its potential as a truly transformative platform in the Patient Capital space.’ Campbell added: “We have taken an opaque, antiquated, administratively burdensome sector and transformed it into one that’s accessible, easy to understand and all through digitalisation. Kuber is moving to the next level and Brendan’s skills and knowledge will help accelerate that.”

YFM invests £1.5m into e2E Engineering Specialist private equity fund manager YFM Equity Partners has backed a £1.5m investment into e2E Engineering.

The latest investment will be used to commercialise and launch the first product of this nature, NEATaccess, an innovative communications node.

e2E is a leading technical consultancy operating in the telecommunications market, with particular expertise in satellite communications. The YFMs funding comes from its two advised VCTs, British Smaller Companies and British Smaller Companies 2.

As part of the investment, YFM has introduced Mark Hurley to join the board. He holds a number of executive and non-executive positions across a wide range of sectors.

Based in offices in Welwyn Garden City and Gateshead, e2E has had support from the European Space Agency and Innovate UK, and used its wealth of experience to develop its own suite of products and services that will solve communications-based problems in the telecommunications industry.

The company will continue to be led by Barry Ross, Eliot Minn and Chris Clarke, who together founded the business. Investment Director at YFM Andy Thomas said: “We were attracted to this opportunity due to the strength of the long-established management team and the exciting, unique technology that they had developed over recent years. NEL Fund Managers introduced the deal and

GB Investment Magazine · November 2017

it was particularly pleasing to work with both them and local advisers to help bring this deal to completion. We look forward to helping this business to grow in the North East and Welwyn Garden City.” CEO at e2E Barry Ross said: “The telecommunications and satellite communications market is rife with opportunities at the moment, given the complex networks and everexpanding communications channels on offer. At e2E we have proven experience of developing bespoke and successful solutions and, with YFM’s support we look forward to launching these to the wider market. “YFM is known for its impressive expertise in this sector and I look forward to working with them and Mark Hurley to enable e2E to reach its full potential.”

With over 200 years of combined experience of sector-focused investing in growth businesses, Deepbridge works with clients to design innovative products, inducing direct investment in technology and life sciences innovation as well as asset-backed renewable energy projects. Deepbridge partners with experienced management teams to help the underlying investee companies realise their potential with the target of building successful leading-edge businesses. Everything Deepbridge does is underpinned by commercial experience in the sectors in which they operate and a culture of professional excellence and integrity.

Deepbridge Technology Growth EIS*

Deepbridge Life Sciences EIS*

Deepbridge Inheritance Tax Service*

Invests in technology companies with the potential for significant capital growth. Offering a diversified approach across energy and resource innovation, medical technology and specialist IT solutions sectors.

Invests in a portfolio of healthcare innovations, targeting significant capital growth, operating in the bioscience, pharmaceutical and medical technology industries.

The Deepbridge Inheritance Tax Service is a discretionary investment management service that invests in asset-backed renewable energy opportunities, targeting a 6% yield p.a. after the second year.

Deepbridge Sci-Tech Daresbury SEIS*

Deepbridge Life Sciences SEIS*

Early-stage investment in emerging technology companies based at the renowned science and innovation campus at Sci-Tech Daresbury.

Access to a diversified portfolio of innovative and disruptive early stage companies operating in the bioscience, pharmaceutical, medical technology and healthcare industries.

01244 746000 www.deepbridgecapital.com Deepbridge House, Honeycomb East, Chester Business Park, Chester, CH4 9QN Deepbridge Advisers Limited is an appointed representative of Sapia Partners LLP (‘Sapia’), a firm authorised and regulated by the Financial Conduct Authority (the FCA), with FCA registration number 550103. Deepbridge Advisers Limited registered office is at 5th floor, 55 King Street, Manchester M2 4LQ.

* Risk warning – Generally the underlying investments of these propositions are likely to be both illiquid and high risk, not suitable for all investors and investors should not consider investing unless they can afford the full loss of their investment. As EIS / SEIS investments are often illiquid there is likely to be limited information as to their value. This document is a financial promotion for the purposes of section 21 of the Financial Services and Markets Act 2000 and has been approved by Sapia Partners LLP. Interested Investors should seek independent advice before considering investing. This document does not constitute financial, tax or investment advice. Applications are only accepted on the basis of suitability and qualification criteria. Please refer to the full disclaimer and risk section in the respective Information Memorandum for further details.

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“Deepbridge is in the vanguard of EIS Managers, the personnel are seasoned and, in some cases, eminent, bringing cross-sector expertise in technology and private equity.” ALLENBRIDGE LTD: TAX SHELTER REPORT ISSUE 250

THE NEW KIDS ON THE BLOCK An investment showcase bringing you the newest offerings from the sector Investment: Downing ONE VCT Aim: A generalist VCT investing in small growth and income-focused UK companies

Tell us about the fund Downing ONE VCT has a generalist strategy and invests in small growth and income-focused UK businesses across a range of sectors. London-based investment manager Downing LLP is the investment adviser to the VCT. Downing ONE is one of the larger, more diversified VCTs in the market, offering investors access to a £90 million portfolio comprising approximately 80 companies, including those in the care home and renewable energy sectors. In comparison to smaller, less diversified VCTs, investors in Downing ONE can benefit from lower annual running costs (which are spread across a larger asset base) and increased liquidity, which should help facilitate the VCT’s intention to offer regular share buybacks at 5% discount to the latest published net asset value (NAV). The VCT is seeking to invest new funds in qualifying growth and income-focused companies. Some of Downing’s key criteria when deciding which businesses to invest in include: • A strong and experienced management team with whom Downing can build a long-term relationship. • A unique product to differentiate from the competition and a clear market for the product. • A suitable location for the type of business. • A clear exit route.

How much is being raised? Downing ONE VCT has just launched a £20 million top-up offer (with an over-allotment facility of up to a further £10 million) to support the growth of existing portfolio companies and take advantage of a strong

GB Investment Magazine · November 2017

pipeline of new opportunities and support small businesses with growth potential.

What types of investments are being sought? Downing ONE focuses on both growth and incomefocused investments. Growth investments will typically be revenue generating companies, including unquoted companies in e-commerce and technology, and those quoted on AIM or the NEX Exchange Growth Market. Income-focused investments are generally unquoted companies that either own substantial assets or have predictable revenue streams such as health clubs, pubs and children’s nurseries.

What is the minimum investment? The minimum subscription is £5,000 per annum. There is no maximum subscription but income tax relief is restricted to £200,000 per individual per tax year (2017/18 and 2018/19). In addition to the usual lump sum offer, investors in Downing ONE can opt for monthly subscriptions. This is equivalent to a minimum investment of £500 per month (a maximum of £16,666 per month).

What is the targeted return? Downing ONE intends to provide an annual dividend of at least 4% per annum, based on the latest published NAV. This is equivalent to a tax-free yield of 5.7% per annum on the current offer price (after 30% income tax relief). Investors also have the option to reinvest their dividends in new shares, which should qualify for the usual tax reliefs. The following example shows the effect of the initial 30% income tax relief (based on a notional investment of £1,000): Your gross investment

£1,000

30% income tax relief

(£300)

Your net investment

£700

Assumed issue costs of 2.0%

(£20)

Initial Net Asset Value

£980

Initial uplift (£)

+£280

Initial uplift (%)

+40%

Provide details of the top three fund holdings Empiribox Ltd Empiribox provides UK primary school teachers with the equipment, lessons plans and CPD-accredited support to deliver engaging and practical science lessons. The company was founded in 2014

by former science teacher Dan Sullivan to help improve the standard of science teaching in primary schools and encourage students to take the subject at A-Level. Empiribox has seen strong growth and now supplies to more than 20,000 pupils across 150 schools in the UK. Xupes Ltd Xupes is an online retailer of pre-owned luxury goods, including watches, handbags, jewellery and antiques. Founded by Frank and Joseph McKenzie, Xupes has grown from its roots as a family business into a profitable company with a strong brand centred on exceptional customer service. The e-commerce market has developed considerably over the last 10 years, we believe led in part by an improved level of trust in online shopping and security. Downing was attracted by the opportunity to back an experienced team and help them build their brand into the go-to online store for pre-owned luxury goods. Downing Care Homes Holdings Ltd Downing Care Homes operates four residential care homes providing specialist services for adults with learning difficulties and physical disabilities. They are located in Hampshire and Surrey, and were either developed from scratch or acquired from other operators. The management team at Downing Care Homes is highly experienced. Managing Director Graham Elliot has worked in the care sector for over 30 years, bringing both strategic direction and significant sector experience to this investment.

GB Investment Magazine · November 2017

THE EXITEERS Bringing you news of successful exits in the sector Fund: Foresight VCT Exit: Simulity Labs

Details of the fund Foresight VCT, formerly known as Foresight Technology VCT, was launched in 1997. In 2015, following shareholder approval, Foresight VCT plc was merged with Foresight 2 VCT, creating the third largest VCT in the UK. In March 2017, the fund closed its most recent fundraising having reached full capacity of £40 million in just six weeks. This fund invests in later stage growth capital opportunities across a range of sectors and currently has a portfolio of over 30 companies. On 1 November 2016, Foresight VCT invested £4 million of development capital into Simulity Labs to expand the sales team, continue product development and capitalise on the growing ‘internet of things’ (IoT) market opportunity. On investment, revenues stood at c.£9 million and the business was roughly EBITDA breakeven. In July 2017, after eight months, Simulity was sold to ARM Holdings, the world’s leading semiconductor IP company, returning £11.4 million to Foresight funds.

What does the company do? Simulity is a specialist technology business, powering the future of connected devices and the IoT through its embedded communications software for SIM, e-SIM and next generation connected products. The SIM modules are typically pre-loaded with embedded ‘over the air’ (OTA) and ‘operating system’ (OS) software to allow for remote locking/unlocking of the SIM devices and subscription profile updating over a GSM network. The company was founded in 2009 by Stephane Fund, a long-standing technology and telecoms manager and entrepreneur. At the time of investment, Simulity had offices in Wales (HQ in Bangor), Cape Town and Belfast.

What did the company invest the money in? The company fully utilised the investment from Foresight, developing its technology, making internal changes within the company, shifting its corporate position and much more. However, the investment

GB Investment Magazine · November 2017

wasn’t exclusively about money and the two companies built a strong efficient partnership that resulted in what is undoubtedly a huge success. Technology and Market ‘Development’ • Simulity launched onto the IoT market with their newly developed e-SIM technology. • Advice from Foresight encouraged Simulity’s strategic focus to change from low margin SIM card reselling towards software licensing and accelerated investment into cutting edge e-SIM software. • As such, the company increased valuable recurring revenue, with license sales increasing several fold as a proportion of total revenue and gross margin doubling between FY16 and exit, respectively. Internal Changes to the Company • The team at Foresight created a detailed 100 day plan which set out 50+ key actions to drive the value of the business including quick wins and ways to professionalise the business. • Foresight incentivised management to enhance the gross margin (driven by increasing license sales mix) and EBITDA, through the use of bonus schemes, options and equity ratchets. • Foresight professionalised board meetings and KPI reporting, which led to closer scrutiny and focus on reducing working capital (with significantly better creditor /debtor days negotiated as well as a large reduction in aged stock), which tight cost controls introduced to drive margin. • Foresight supported in a successful R&D tax credit claim. • Foresight also introduced Simulity to a number of new potential customers and partners through their extensive industry network. Corporate positioning • Simulity maximised media coverage of Foresight’s investment and institutional backing, including enhanced presence at key trade shows. This ultimately resulted in:

- Several large international customers (in Israel, US, China etc) having comfort to progress technical trials in regards Simulity’s e-SIM technology; and - Raising awareness of Simulity’s growth and technology to potential acquirers, including ARM. • Strengthening the senior executive team with industry veterans from larger competitors, including Professor Sinclair Stockman (former BT Group Chief Investment Officer), Jean Philippe Betoin (former Morpho Head of IoT & Marketing Director Gemplus), and Kim Luders-Jensen (former Logos Sales Director). Other • Operationally increased staff numbers by 25%, bolstering sales and marketing resource. • New international offices opened in South Africa, India and the US. This helped quickly supplement existing offices in Northern Ireland and Wales and boosted their international sales presence.

How much was raised? Prior to Foresight’s investment, the business had raised c.£800,000 from management and high-networth individuals. Simulity was also supported by a debt facility of £1.5 million.

How was the exit achieved? As a result of Simulity’s enhanced public profile due to Foresight’s investment and the rapid growth of the company, Foresight was approached by ARM, the world’s leading semiconductor IP company, relatively shortly after investment. After a period of negotiation the sale completed in July, just eight months after initial investment. Foresight received £11.4 million on exit, compared with investment of £4 million, an exit multiple of almost 3x. Given the hold period of only eight months, this implies an IRR of c.400% for Foresight funds. • Foresight total investment: £4 million. • Foresight’s investment was held for eight months.

• Sale of Simulity to ARM Holdings. • Received £11.4 million on completion (and there is a deferred consideration of £300,000 due after 12 months which will increase the return to £11.7 million). • Implied cash return of around three times the original £4 million investment. • c.400% IRR for Foresight VCT.

How much was returned to investors? Given this was a VCT investment, nothing was returned to investors directly, with proceeds being returned to the fund, for re-investment and payment of dividends and buybacks etc. The Foresight VCT board did however announce a dividend of 4p per share in August 2017, which was in part payable as a result of the Simulity exit.

What other benefits has the company provided? As Simulity underwent rapid expansion from Foresight’s investment, it created numerous jobs in the existing offices in Bangor (Wales) and Belfast, as well as bringing investor attention to the regions. The team has grown by 25% since the point of Foresight’s investment in late October 2016, with approximately 50 members of staff presently. In addition to Simulity’s existing offices in Wales and Belfast, the investment aided the establishment of new offices in South Africa and India, accordingly increasing the business’s international profile alongside that of largescale customers. The business was a very successful exporter, with 80%-plus of revenues generated overseas.

How will you continue to support the company? Foresight held a non-executive director position on the board, as well as an observer position on the board. With the business now sold we have relinquished these positions but we wish the business and management team all the best for the future.

GB Investment Magazine · November 2017

FILM CLUB Turning the lens on investments with movie star qualitiy Manager: Goldfinch Entertainment Fund: A number of films in production Tell us about the fund? Goldfinch Entertainment was set up by Kirsty Bell, who is Managing Director, in 2014 to structure and raise finance for entertainment and media projects. It began as one EIS vehicle – Goldfinch Pictures that would invest in to film and tv via sales advances – but quickly blossomed into numerous EIS and SEIS vehicles involved in film, tv, video games, music and theatre in a variety of different ways. Over the past three years, Goldfinch has raised over £75 million to help finance over 130 projects in the creative industries at various stages of development, production and distribution. Our role has changed some what, although we still have the structuring and finance element as our bread and butter, but we now are engaged as executive producers /producers on the projects that come to us. We believe this is our major USP and reason for our success we believe, as we take a lead in ensuring our projects are produced and sold efficiently and profitably, rather than just providing passive finance. While we only measure projects on their commerciality and ability to make profits for us and our investors, our projects have included a variety of festival-selected and award-winning films, including James Erskine’s Building Jerusalem; Mad To Be Normal starring David Tennant; Hector with Peter Mullan; Burn, Burn, Burn starring Laura Carmichael; My Feral Heart with Steven Brandon; Adult Life Skills starring Jodie Whittaker and The Carer starring Brian Cox. Our games projects have littered the awards circuit, in particular Lost Words, Cube Kids and Qube 2. At present we are focusing our attention on our EIS fund and SEIS funds for the 2017/18 tax year which are in the process of being relaunched. We are also announcing our first exits from our first tranche of EIS and SEIS investments which will be at the targeted £1.23 and £1.25 respectively, which we are extremely pleased with and hope sends a signal to the market, investment managers and IFAs that you can make money from film and media investment and we are the leading people delivering this for our investors.

What films are in production? The Ice King World-renowned high-end sports documentary and drama producers New Black Films and BBC Storyville team up to produce biopic of British figure skater John

GB Investment Magazine · November 2017

Curry, the 1976 Olympic and World Champion, who also became one of the first openly gay Olympians. Triple Word Score A supernatural comedy-drama follows the story of a father (starring Bill Nighy) searching for his missing son, with whom he shared a passion for the board game Scrabble. The film is a journey of mystery, self-discovery and hope. Ray and Molly After The Apocalypse Penned by up-and-coming screenwriter Mark Simborg and directed by Clare Kilner, the film follows Ray and Molly as they are thrown together in a post-apocalyptic world, forced to try and put aside their differences and challenge the rules of love. Gatecrash Gatecrash drives the audience to breaking point in this supernatural modern-day revenge tragedy which is adapted from Terry Hughes’ Fringe First awardwinning stage play and is directed by Lawrence Gough. A couple are brutally made to pay when they refuse to accept responsibility for an act of violence. The Revenger Comedy film from The Comedians Guide to Survival Director Mark Murphy, produced by GSP Studios and Solar Productions starring Samantha Barks (Les Misérables) and Robert Kazinsky (Pacific Rim). Return to the Island of Dr Moreau Sci-fi Thriller family film based on HG Wells’ The Island of Dr Moreau about a seemingly paradise island which turns out to be full of hybrid animals and hybrid humans. Warriors Code A documentary about the warrior’s code between fighters all around the world featuring former WBO middleweight and super-middleweight champion of the world Chris Eubank, and his son, current IBO super-middleweight champion Chris Eubank Jr.

What film characteristics should investors look out for? We take film investment back to business basics, the same basics you would apply to any other industry or company. We ensure that the budget is set at the correct level, and that the route to market is pinned down with an accurate view of the target market, sales and distribution strategy. As long as these fundamental things are in place from the start, the cast or storyline or whatever creative aspects merely need to be managed, hence why we

take a strong lead in all projects as executive producer or producer, to deliver on the budget and sale plan. And ultimately we need to know what it is costing and what we can sell it fro as quickly as possible, to make sure we are hitting the returns we expect.

What is the minimum investment? For SEIS it is £5,000 and for EIS it is £19,000.

How much has been raised? Each company has varying amounts left available to investors.

What return can investors expect? For the EIS fund the targeted return is £1.23 and for the SEIS the targeted return is £1.25, per £1 invested. All the usual tax benefits of EIS and SEIS investments.

What are the risks? Risks in investing in film usually boil down to; 1) the film not being delivered or 2) the film not being sold or 3) the investment not being recouped despite being sold. We avoid these through our rigorous due diligence process that comes down to ensure we have the right budget and the best sales strategy and route to market in place. Additionally that the producers involved have a strong track record and ability to deliver the project on paper. This means we often go back to a known and trusted group of producers we have worked with and invested in previously, and any new producer tends to come recommended to us and with an impressive back catalogue. The infrastructure and hands-on involvement we take in projects ensure that film is delivered and to a standard that can be sold. We will attach a sales agent as early as possible to influence and guide the project and decision making. Lastly we will never take the ‘equity’ position in a films recoupment, we always take either the ‘sales advance’ or ‘GAP’ position at the top of the recoupment waterfall ensuring it is easier for us to recoup our investment plus premium back. It is probably also important to add that we always assess the return to our investors and any investment

decisions made without EIS and SEIS tax benefits. The investment must stand on its own two feet, and as soon as you start to build in the tax benefit too you start to make decisions for the wrong reasons.

Why is the UK film industry important? The UK film industry, and the wider creative industries, are one of the main drivers of our domestic economy and puts the UK on the map internationally as a leading hub creatively. The film sector is a major contributor to the UK creative industries economy adding billions to UK GDP each year and supporting jobs across the country. The growth of the film sector also benefits other parts of the economy, as it empowers our workforce to develop new skills and provides the infrastructure for innovation. The UK has a globally-recognised long history in filmmaking, with much of the world’s best-loved and most critically-acclaimed screen content made in the UK. The diverse array of British-made films and talent both in front of and behind the camera, are celebrated by major awards and in great demand. British production and post-production teams are highly valued worldwide, with many of the biggest box offices success of recent years filmed in the UK. Government support in the form of the tax reliefs now available have played an important role in helping the screen-based creative industries to thrive making production in the UK much more lucrative. This in turn has helped emboldened the UK’s long history of negotiating successful co-productions with international partners, and attracting inward investment from the major studios. Investing into film is now an even more attractive opportunity due to revenue streams now stretching beyond just cinema box office ticket sales with DVD/ Blu-Ray sales, television and Video on Demand (VOD) deals and the sale of merchandise all counting towards the profit a film makes and can continue to generate a profit for a lifetime. The rise of the ‘binge-watching’ culture with viewers streaming film / TV content on a whole host of internet enabled devices means that films are reaching wider audiences than ever. As well as the financial rewards, investors could also see their name in the credits at the end of the film, they could be involved in the production of a film and could even be invited to the red carpet event when the film premieres.

GB Investment Magazine · November 2017

P R I VAT E

C L I E N T S

PATIENTLY WAITING: THE IMPACT OF THE PATIENT CAPITAL REVIEW The Government’s review of patient capital is nothing to fear, says Association of Investment Companies Communication Director Annabel Brodie-Smith

Last autumn the Treasury launched the Patient Capital Review to investigate the obstacles to getting ‘long-term investment in innovative firms led by ambitious entrepreneurs who want to build long-term businesses.’ We had to wait patiently until 1 August when the Treasury’s consultation on patient capital was launched, called Financing Growth in Innovative Firms. The consultation looked at the evidence, considered the barriers to a supply of patient capital and reviewed the current ways to support investment in patient capital including VCTs and the EIS. There were also some new ideas including a new national

investment fund for patient capital or a governmentfunded patient capital fund which would be sold off later on. This autumn there has been media speculation that the Patient Capital Review will lead to the Government changing the VCT and EIS rules. The Treasury is due to respond to the Patient Capital Review in the Budget on 22 November so we will know more about the outcome then. The key question is how do VCTs meet the Treasury’s objective to effectively provide patient capital? There is strong evidence that VCTs are an ideal means to raise much needed capital from retail investors to help smaller businesses grow. The AIC

GB Investment Magazine · November 2017

recently published a review of VCT investment up to the end of 2016, Transforming Small Business, which makes interesting reading for those trying to find effective ways of channelling patient capital into high potential UK businesses. There is evidence to suggest that VCT support is helping smaller UK companies achieve real growth and that this, in turn, is bringing valuable benefits to the UK economy. The AIC’s research found that VCTs help investee companies to more than double their turnover. Within the current VCT portfolio every £1 million of investment has been accompanied by an average turnover increase of £2.2 million. Where funds have had longer to work growth has been greater. Businesses that received investment more than five years ago have achieved average turnover growth of £3.9 million per £1 million invested and those who received funds over 10 years ago performed even more strongly, with an average turnover of £8 million per £1 million invested.

Economic advantages This impressive growth VCTs are helping companies to achieve is creating economic advantages. Businesses currently benefiting from VCT investment now employ 50,000 staff and these companies have created 27,000 jobs across the UK since VCTs invested, an increase of 116%. Each VCT-backed business now employs 109 staff on average. VCT investment has also been an important driver of exports. International growth is a goal of numerous ambitious smaller companies and many VCT-backed businesses are striving to increase their international sales. We found that almost half of the companies surveyed receiving VCT investment reported exports worth £1.4 billion. This represented nearly half of their total turnover. There is also evidence that VCTs support innovative, ambitious companies which often have the potential to transform existing markets and create new ones. Over a third, 36%, of the companies surveyed that are held by VCTs reported research and development expenditure of £282 million in 2016. Companies that reported research and development expenditure received over half a billion pounds from VCTs since investment, with the health, information technology, digital, creative and information services sectors reported as spending the most on research and development

Longer-term benefits VCT investment is clearly patient; our research demonstrated that more than half of all VCT portfolio companies had benefited from VCT investment for longer than five years. Many had benefited from VCT investment for longer. One fifth of VCT investee companies had received funding for more than 10 years and 6% of portfolio companies had been held for more than 15 years. As well as taking a patient view with their investments, VCTs are crucial in targeting the SME finance gap, providing valuable funding to smaller companies

GB Investment Magazine · November 2017

which are not well-served by traditional investors. That gap, estimated to be funding between £2 million and £10 million, is a level which tends to be out of reach for small businesses themselves, but is too small to attract conventional private equity funds. The AIC’s review found that over half of companies supported by VCTs had received total investment at this important level with the average amount of investment received by small businesses totalling £3.2 million. Providing follow-on finance is another key aspect of VCTs’ patient, long-term approach. Many investee companies have been able to rely on continued financial support from VCTs to move them to the next stage of their commercial development. Excluding companies that had been held by VCTs for less than three years, we found that 60% of portfolio businesses had received more than one VCT investment, whilst almost half (44%) had received more than two. Providing successive rounds of growth orientated investment is extremely important to the success of many smaller innovative businesses. Pleasingly too, nearly half of this total VCT investment had been made outside of London and the South East, meaning innovative companies across the UK are having the opportunity to benefit from this patient capital. VCTs, however, aren’t just providing capital. They are providing valuable expertise too. Many investee companies have a representative of the VCT or its manager on the company’s board and this oversight helps the business meet its commercial potential.

Risky business Despite all these economic benefits, the Government is concerned about investments in assets which can help reduce the risk of EIS or VCT investments. As the largest investor in the scheme through its generous tax reliefs, it is only right that Government should consider ways to make the scheme as effective and efficient as possible. VCTs also offer value for money to the Treasury as they do not automatically return capital to investors on the disposal of a successful investment, but often reinvest this money in new businesses without any additional upfront tax relief. However, the AIC has recently proposed measures to meet the Treasury’s objective and key amongst these is a restriction on allowing VCT and EIS money to be used to purchase property. This should help address the Government’s concerns and will ensure that future VCT investment will be focussed on supporting the development of ground-breaking technologies. Clearly, we will be watching the Government’s response to the Patient Capital Review with interest. It’s important to remember that adaptability is one of the key strengths of the VCT sector, which always has coped well with change. It’s clear that there is strong evidence that VCTs promote economic growth, with jobs in investee businesses more than doubling after VCT investment, as well as boosting tax receipts which offset the cost of the tax reliefs. We are confident that VCTs will continue to provide vital scale up capital for the UK’s smaller companies, the engine of the UK economy.

VCTs will continue to provide vital scale up capital for the UK’s smaller companies, the engine of the UK economy

GB Investment Magazine · November 2017

CAN ALTERNATIVE INVESTMENTS BE AN ALTERNATIVE FORM OF RETIREMENT SAVING? Will Laws, Senior Manager at Oxford Capital, argues the pros and cons for using VCTs and EIS as a retirement saving vehicle

A series of restrictions on pension contributions mean that high earners are looking for new ways to save for their retirement. Some providers of tax-efficient investments might pitch VCTs and EIS as a solution. We take a more nuanced view. Venture capital schemes can be a welcome addition to a high earning client’s overall wealth strategy. And we do expect that the limits on pension savings will continue to drive increased demand for VCTs and EIS. But as attractive as the tax advantages may be, these products are clearly not a straight swap for a pension. Clients who want to use VCTs and EISs as part of their retirement planning need careful advice.

What’s the problem with pensions? For most people, the £40,000 annual pension allowance is not going to cause any great inconvenience. But the rule changes introduced in April 2016 reduced the annual allowance for high earners. For every £2 earned above £150,000, the annual allowance is reduced by £1, down to a minimum of £10,000. As such, an individual earning more than £210,000 will only be able to make a pension contribution of £10,000. Each year they will miss out on tax reliefs of £13,500 – 45% of the lost £30,000 of allowance. Of course, if the annual allowance in the previous three tax years was not fully utilised, the surplus allowance can be carried forward to the current year, allowing for a bigger contribution to be made. But if a high earner has consistently used their full annual allowance, the new tapering rules could leave them with a lot of surplus cash.

What might high earners do with excess remuneration? Some clients could be tempted to continue contributing to their pension in excess of their annual allowance, accepting that the tax reliefs on the surplus contributions will be removed. But they will need to keep a careful eye on the size of their pension pot. If their pension eventually pays out more than the lifetime allowance of £1 million, the excess will be taxed at up to 55%, depending on how the benefits are taken.

GB Investment Magazine · November 2017

As such, many high-earning clients will need advice as they search for an alternative home for surplus cash. A few possible solutions include: • Investing in ISAs. ISA contributions have been a staple of tax planning since they were first introduced in 1999, and many clients may actually prefer to fully utilise this option before making pension contributions. There’s no income tax relief on ISA savings, but unlike a pension there’s also no tax to pay when the client eventually accesses their money. A maximum of £20,000 can be put into ISAs every year. Investors under the age of 40 could also start a Lifetime ISA, into which they could invest up to £4,000 of their total ISA allowance. • Paying down debt early. Paying off a mortgage or other debts sooner than planned could be a sensible move, particularly for clients who are risk-averse. UK interest rates can’t remain at historic lows for ever, and early repayment of a mortgage could lead to interest savings in the coming years. However, some mortgage providers limit early repayments. And many advisers will feel confident they can achieve a higher overall return for their clients by putting cash to work, rather than paying off debts, particularly when interest rates are so low. • Investing in property. Buy-to-let property has been a popular investment choice over the last 10 years, as house prices and rental incomes have increased whilst borrowing costs have remained low. But the hassle of managing a rental property isn’t for everybody, and recent changes to the way rental income is taxed have made the sector less attractive. There are also mixed opinions about whether the UK might be edging towards a house price slump, which may deter some clients from buying property.

What about other investments that offer tax incentives?

This has the effect of pushing EIS and VCT money into smaller, earlier-stage businesses.

If a client’s top priority is to invest in a way that generates tax reliefs, they might be tempted to look at alternative investments. VCTs and EIS offer income tax relief equal to 30% of the amount invested, as well as tax-free returns and a range of other reliefs, subject to various conditions being met. On the surface, this compares favourably to the reliefs on offer from pension contributions.

Timing is everything

But it’s vital to remind clients that these different sets of reliefs exist to encourage very different types of behaviour. Tax reliefs on pensions are designed to encourage people to save prudently for their retirements. Tax reliefs on VCTs and EIS are designed to encourage people to put money into high risk investments to support smaller companies. Indeed, a series of rule changes over the last few years has meant that, if anything, both venture capital schemes have now become somewhat higher risk. For example, EIS investments into lower-risk energy assets, which formed the backbone of the EIS industry for several years, are no longer possible. And in 2015, VCTs became more tightly focused on early-stage investments, through tweaks to prevent the use of VCT funds for management buyouts and growth through acquisition. Both schemes are also subject to EU State Aid rules, which include limits on the total amount of funding a business can receive through the schemes.

As well as the risk profile, clients may need advice on the practicalities of getting tax reliefs through VCTs and EIS. Tax reliefs on pensions are easily achieved at the eleventh hour, simply by moving cash into the pot right at the end of the tax year. This approach might work with VCTs and EIS, but clients need to be aware that the application process for these investments is generally more complicated than making a pension contribution. Furthermore, many of the best EIS and VCT opportunities will be over-subscribed long before the end of the tax year. Planning at the last minute may result in the client missing out on the chance for tax reliefs altogether. With EIS in particular, clients also need to be reminded of the timing of reliefs. EIS income tax relief is only available once the client’s subscription has been invested into qualifying shares, and EIS3 certificates have been issued. Some EIS will fully invest the client’s subscription into a small number of companies before the tax year-end. But EIS portfolio services will often deploy cash into a series of investments over a period of 18 months or more. If a client subscribes to an EIS portfolio service at the end of the 2017/18 tax year, the cash may not be fully invested until late 2020. Because the later investments that complete the portfolio will fall into the 2020/21 tax year, it will not be possible for the client to carry all of the reliefs back to the 2017/18 tax year.

In conclusion EIS and VCTs are not direct substitutes for pension contributions. Instead, they need to be assessed in the context of an investor’s overall wealth and risk appetite. If an individual is accumulating significant cash, they might wish to consider allocating a small proportion of their total wealth to VCTs or EIS to help mitigate tax. But this should form part of broader strategy to mop up their excess remuneration and plan for their retirement.

GB Investment Magazine · November 2017

GOLDFINCH ENTERTAINMENT EIS • EIS FUND • SEIS • SEIS FUND

Goldfinch Entertainment represents the gold standard in entertainment and media investment

Founded in 2014. Built and run by a team with enviable industry experience. £60m+ deployed into 105+ projects across Film, TV, Animation, Kids TV, Apps & Video Games. BAFTA and Oscar winning producers, directors and developers. Casts have included Orlando Bloom, Bill Nighy, Sir John Hurt, Charles Dance, David Tennant, James Buckley, Brian Cox, Helen Baxendale and Martin Freeman. Twice shortlisted consecutively for ‘Game Changer’ Growth Investor Award. Approved EIS vehicles & EIS Fund. Approved SEIS vehicles & SEIS Fund.

info@goldfinchentertainment.com • www.goldfinchentertainment.com • +0044(0)203 897 8861

GROWTH IS THE ONLY GAME IN TOWN Ewoud Karelse, Head of Tax Advantaged Investments at Tilney, looks at how advisers can utilise VCTs in client portfolios

In November 2015, 20 years following the introduction of VCTs, the Government re-focused the VCT managersâ&#x20AC;&#x2122; investment strategies on younger, earlier stage, and smaller companies. Fast forward two years and we find ourselves looking at a potential further refinement of the investment rules to exclude certain forms of asset-based investments. In a year that VCTs are seeking a record amount of funding where does it leave advisers navigating between the various offers out in the market?

Why use VCTs? VCTs have been a popular investment choice over the years and not just for the initial income tax relief, as can be seen from the very long period shareholders tend to hold on to their shares. The real driver for investors is often the tax-free dividend. With pension contributions limited not only by a lower lifetime allowance but also by reduced annual allowances for high earners we are seeing more and more advisers entering this area of advice for their clients. It is important to note, however,

that ISAs and pensions can hold much more liquid and diversified investments than offered by VCTs and that the tax benefits of VCTs are given because investors are taking on more risk than they would otherwise do when investing in more regular investments such as unit trusts and OEICs. Before recommending that a client invests in a VCT, it is therefore essential to make sure it is appropriate for the client to hold this type of investment. For example, at Tilney we would expect that clients have the appropriate appetite for risk and capacity for loss, and that they are at least a high-net-worth investor, with the VCT making up less than 10% of their net investable assets. It is possible to create a portfolio for your clients that has VCTs that pay out at different times of the year. For example, Albion Capital manages six VCTs that, together, aim to pay out a dividend each month of the year. Other VCTs, including Downing ONE VCT and Octopus Titan VCT, offer the option to subscribe monthly. Another option to discuss with clients is to

GB Investment Magazine Âˇ November 2017

re-invest the dividends in new shares. This could be interesting for clients who are still building up their retirement funds and who donâ&#x20AC;&#x2122;t need to take an income at this stage. These re-investments usually also attract 30% income tax relief but must be held for five years and so an accurate account of these must be kept, to avoid problems when clients come to sell their shares. The most common period for clients to invest in VCTs is during the times when VCTs come out with new offers. We are however, seeing a growing interest with clients to access VCTs on the open market as well. These can often be picked up at a discount of between 5% and 15% to the net asset value and will also provide a taxfree dividend, but crucially, they are not restricted by the minimum five year holding period.

How to choose a VCT? VCTs can still be divided roughly between two camps: those that invest in unquoted businesses and those that invest in AIM-listed companies. There are a handful of VCTs that do both and it is important to understand the investment strategies of the VCT managers.

GB Investment Magazine Âˇ November 2017

Within the VCTs that focus on unquoted companies there can also be significant differences in approach; some will not back firms that are not yet profitable whereas others are very comfortable investing in businesses that are already revenue generating but not yet breaking even. Some managers, especially those investing on AIM such as Unicorn and Octopus, have adopted a generalist approach, while others specialise in certain sectors, e.g. consumer brands, engineering, software and IT, business services, or medical technology. A close read of the prospectuses and recent annual and interim reports of the VCTs will give insight into the ability of the fund manager to make investments that fit the VCT rules and as well as their ability to exit these companies. Increasingly, VCT managers will have to provide mentoring and coaching to these younger and smaller companies that they invest in; it is therefore important that the VCT fund managers can evidence that they can do this effectively. By better understanding the investment strategy as well as the ability and track record of the fund manager

The best time to invest will be during the first few months that a VCT is open because it will often provide a significant discount

it should be possible to create a portfolio of VCTs that complement each other, creating a more diversified investment solution for clients. Asking fund managers your questions directly is an excellent way to get to know their product. For example, advisers could attend a presentation by the fund manager, or their promoters, or participate in one of the webinars hosted by the VCTs. Help in researching this complex area is on hand. In-depth sector reports are issued by Intelligent Partnership and there are several specialist research firms that provide independent analysis of VCTs. The main ones are Allenbridge, Tax Efficient Review and MICAP with some reviews written by Hardman & Co as well. The first three companies provide a subscription service. Before signing up it is well worth to check if the VCT provider has bought the marketing rights to these reports so that you can test the product before choosing a firm that you like the research of and subscribe to get access to their full range of VCT reviews. Another source is the AIC website where advisers can compare the investment performance of the VCTs.

The future is… …soon to be a lot clearer. With the Government’s Patient Capital Review having closed to comment and feedback on 22 September, the industry awaits the outcome of this review with bated breath. Some expect that HM Treasury will make further changes to VCT legislation on the back of the evaluation and that these could be introduced with the upcoming Budget on 22 November. There is some nervousness that this could include a restriction on some forms of asset-based investments favoured by VCTs aiming to preserve the capital of their shareholders and return only modest levels of growth. In response to this concern, the board of the Albion Venture Capital Trust has withdrawn its offer for this tax year, to await the outcome of the consultation. Most VCTs will issue shares before the Budget ahead of any potential changes and so advisers should consider this when speaking with their clients, potentially bringing forward a decision to invest in VCTs.

GB Investment Magazine · November 2017

M AGAZINE

OPEN OFFERS Highlighting some of the key offerings currently available to IFAs

Open Offers

EIS Open

Now

Evergreen

Amount to be Raised: N/A Minimum Investment: £25,000

Seneca EIS Portfolio Service The Seneca EIS Portfolio Service is an evergreen discretionary management service that offers investors the opportunity to build a portfolio of equity investments in UK based SMEs, which are seeking an injection of capital to fund their next phase of growth. The Service gives investors a portfolio of 4-6 investments per year diversified by sector. It targets investment returns of £1.60 to £1.80 per £1 invested (excluding tax reliefs). The EIS Service totals over £45m and has completed 60 investment rounds across 35 companies. 17 companies in the portfolio service are already AIM listed providing liquidity, market pricing and exit visibility for investors.

T. 020 7071 3926 E. seneca@lgbrtax.com www.lgbrtax.com

BPR Open

Now

Evergreen

Amount to be Raised: Unlimited

T. 020 7391 4747 E. questions@time-investments.com www.time-investments.com

The Portfolio Manager, Seneca Partners, is part of the wider Seneca business, which has c. £450m invested assets and over £4bn debt under advice. The knowledge, experience and pedigree of Seneca’s investment team, combined with their individual track records of successful investing in the SME sector, is complimented by an extensive deal flow network in the UK’s SME heartlands of northern England and the West Midlands.

TIME:Advance TIME:Advance is a discretionary management service that allows investors to access Business Property Relief (BPR) to mitigate their Inheritance Tax (IHT) liabilities. The service offers 100% IHT relief in just two years, alongside a targeted return of 3.5% per annum. Importantly clients retain access and control, so have the option to withdraw a lump sum or set up regular withdrawals in the form of an income. The service focuses on capital preservation by investing in asset backed businesses which qualify for BPR. These businesses include secured lending, renewable energy, biomass and self-storage. The product is managed by an expert team, with a proven 21 year track record of 100% success in achieving BPR for investors.

GB Investment Magazine · November 2017

BPR Open

Evergreen

Amount to be Raised: Unlimited

TIME:CTC (Corporate Trading Companies) TIME:CTC is a bespoke Inheritance Tax (IHT) solution for corporate investors, which boasts an impressive 21 year track record of delivering IHT relief for investors. TIME:CTC is aimed at business owners who have built up surplus cash in their business and could potentially lose Business Property Relief (BPR). The focus of TIME:CTC is on capital preservation by investing in asset backed businesses which qualify for BPR. These businesses include secured lending, renewable energy, biomass and self-storage. Our strategy allows business owners to maintain control of their assets, avoiding the need for trusts or gifting to obtain relief.

T. 020 7391 4747 E. questions@time-investments.com www.time-investments.com

BPR Open

Evergreen

Amount to be Raised: Unlimited

Targeting a return of 3.5% and potentially immediate reinstatement of BPR qualifying assets. To date more than 1000 of our clients have already achieved BPR on their investments, a 100% success rate.

TIME:AIM TIME:AIM uses our unique ‘smart passive’ approach in selecting companies listed on AIM for inclusion within the investment portfolios we create for investors. Designed to offer lower volatility returns than the AIM market, TIME:AIM will only target AIM listed companies that qualify for BPR. SMART because we use an innovative, defensive market screening process PASSIVE because we remove stock picker bias and ignore market sentiment A welcome secondary benefit of this approach is that we are able to offer this service at around half the annual management fee of many of the traditional AIM BPR fund managers. We believe our service creates a robust portfolio that will allow investors the opportunity for significant growth potential and mitigation of their IHT liability after only two years. • Available within an ISA and non-ISA wrapper

T. 020 7391 4747 E. questions@time-investments.com www.time-investments.com

GB Investment Magazine · November 2017

• IHT relief in just two years • Focus on reducing volatility • Removal of stock picker bias • Lower cost than traditional AIM services

Open Offers

EIS Open

Evergreen

Amount to be Raised: £10m+ Minimum Investment: £25,000

Oxford Capital Growth EIS Through the Oxford Capital Growth EIS, investors can build a portfolio of shares in 12-15 companies over a period of roughly 12-18 months. Each portfolio company should be eligible for EIS reliefs, including 30% income tax relief and taxfree gains. We invest in small businesses seeking to solve big scientific, technological or commercial problems. Our current portfolio includes companies in sectors including games development, eCommerce, digital healthcare and artificial intelligence.

T. 01865 860 760 E. investment@oxcp.com www.oxcp.com

BPR Open

Evergreen

Amount to be Raised: N/A Minimum Investment: £25,000

T. 01865 860 760 E. investment@oxcp.com www.oxcp.com

We work closely with our investee companies, helping to accelerate commercial development with the aim of achieving a profitable exit, usually through either a trade sale or a stock market listing. The Oxford Capital Growth EIS targets a return of 2.0x the amount invested (net of applicable fees and not including the impact of EIS tax reliefs), aiming to return the majority of proceeds 5-7 years after initial investment.

Oxford Capital Estate Planning Service The Oxford Capital Estate Planning Service can help investors mitigate Inheritance Tax by investing in companies that should qualify for Business Property Relief, subject to the requisite holding period. Clients can choose from five different investment options, depending on their preference for capital growth or dividend income. If a client’s circumstances change, they can elect to switch to an alternative investment option. Target returns range from 3% to 5% p.a., and capital can be accessed within 1-6 months through the sale of shares. Investors in the Estate Planning Service will acquire shares in unquoted holding companies. Managed by Oxford Capital’s infrastructure investment team, these companies will make equity investments in, and loans to, companies which in turn will own and operate revenue-generating assets. The investment strategy is currently focused on small-scale power generating equipment, including renewable energy assets. Over time, it is possible that other assets will be added to the portfolio.

GB Investment Magazine · November 2017

Open Offers

EIS Open

Evergreen

Amount to be Raised: N/A Minimum Investment: £25,000

T. 01865 860760 E. investment@oxcp.com www.oxcp.com

EIS

Evergreen

SEIS

Special Opportunities

Amount to be Raised: £20m Minimum Investment: £20,000

Oxford Capital Media EIS The Oxford Capital Media EIS invests in companies operating in the UK’s creative sectors, focusing on business models where risks can be managed through robust commercial contracts. The Media EIS targets a return to investors of up to £1.20 per £1 invested, not including the beneficial impact of EIS tax reliefs. The minimum holding period is expected to be four years. The most recent tranche invested in film sales agents. These companies acquire the right to act as sales agents for a number of independent films, earning revenues from the sale of distribution rights. Using this model, the companies are entitled to be paid from some of the first revenues generated by each film. As such, the companies are not exposed to the risks of box office failure, and they can make a positive return even from films which only recover part of their production budget. A new tranche is expected to open before the end of the calendar year.

Iron Box Capital: Particle 1 Fund Film is a fast growing industry. There is insatiable demand for film globally to provide material for all the new media that offer films. Investing in film is also approved by the government through the availability of both tax credits and EIS tax benefits. Unsurprising as it brings many millions of revenues into the UK. At Iron Box Capital we pride ourselves in our expertise and experience, and to do all that we do very well. After all, our Chairman is Colin Brown, the ex-British Film Commissioner. Through Particle 1 Fund, investors will participate in 3 or 4 films, all of which are closely vetted for genre, audience appeal and saleability. The target IRR before tax relief is 15%, and 25% if you include the tax relief available.

T. 020 7628 7857 E. info@ironboxcapital.com www.ironboxcapital.com

GB Investment Magazine · November 2017

And we should mention that you can have a lot of fun with film. Every investor and their adviser can get involved in our film projects in different ways. Why not talk to us to find out more? Please refer to the Investment Memorandum for full details and risk warnings.

Open Offers

EIS Open

01/08/2013

N/A

Amount to be Raised: Uncapped

Deepbridge - Technology Growth EIS The Deepbridge Technology Growth EIS represents an opportunity for investors to participate in a portfolio of actively-managed growth-stage technology companies, taking advantage of the potential tax benefits available under the Enterprise Investment Scheme. The Deepbridge Technology Growth EIS is a diversified portfolio of actively managed highgrowth companies seeking commercialisation funding. The Deepbridge EIS invests in companies that have a proven technology, clear intellectual property and are operating in a high growth/high value market sector. Focused on investing in high growth companies that are seeking to commercialise and expand, specifically in three sectors: • Energy and resource innovation; • Medical technology • IT-based technology

T. 01244 746000 www.deepbridgecapital.com

SEIS Open

01/07/2015

N/A

Amount to be Raised: Uncapped

The target return for the Deepbridge Technology Growth EIS 22.9% p.a. over a minimum of three years; representing mid-case capital growth of 160p returned for every 100p invested. To ensure maximum tax efficiency for the investor, the Deepbridge EIS is entirely investor-fee free at point of investment.

The Deepbridge Life Sciences SEIS The Deepbridge Life Sciences SEIS is an opportunity to secure potentially attractive returns by investing in a diversified portfolio of early-stage life science companies, whilst taking advantage of the considerable income tax, capital gains tax, and inheritance tax benefits available under the Seed Enterprise Investment Scheme. The Deepbridge Life Sciences SEIS seeks to fund companies with exciting new technologies that satisfy the needs of large and growing markets. The overarching focus of the Deepbridge Life Sciences SEIS offers investors companies engaged in the development of therapeutics for the following areas: • Anti-viral drug discovery and development • Antibiotic drug discovery and development • Neurodegenerative disease therapeutics • Cancer diagnostics and therapeutics • Autoimmune and other metabolic disorders therapies

T. 01244 746000 www.deepbridgecapital.com

The target return for the Deepbridge Life Sciences SEIS is >35% over a minimum of five years; representing mid-case capital growth of 250p returned for every 100p invested. To ensure maximum tax efficiency for the investor, the Deepbridge Life Sciences SEIS is entirely investor-fee free at point of investment.

GB Investment Magazine · November 2017

BR Open

01/07/2015

N/A

Amount to be Raised: Uncapped

Deepbridge IHT Service The Deepbridge IHT Service is designed to deliver capital preservation from a portfolio of Business Relief qualifying renewable energy companies that seek to have a high degree of asset-backing and a business model based on the Renewables Obligation, the UK Government subsidies for the generation of renewable energy. Utilising Business Relief, subscriptions may be eligible for exemption from IHT after a minimum of two years. The Deepbridge IHT Service has a target priority return of 6% per annum after the second year.

T. 01244 746000 www.deepbridgecapital.com

IHT Open

Evergreen

BPR Close

Evergreen

Minimum Investment: £30,000

Fundamental T. 01923 713 890 E. enquiries@fundamentalasset.com www.fundamentalasset.com

GB Investment Magazine · November 2017

Investment criteria: • Attractive subsidies: The UK Government offers subsidies to the renewable energy sector, including Renewable Obligation Certiﬁcates and Feed-in-Tariffs. • No planning risk: Investments will be made in projects with all the necessary permissions in place, providing a known cost base for the investment. • Proven technology: The use of proven renewable energy technologies that allow levels of energy production to be forecast with a good level of accuracy.

Fundamental AIM IHT Portfolio Fundamental Asset Management is an independent, owner managed, investment management firm with an unrivalled knowledge of the AIM market. It has successfully provided AIM portfolio management with inheritance tax planning to private investors, trusts and institutions since 2004 delivering outstanding returns. Our investment ethos for AIM IHT Portfolios is conservative and value based. At its foundation is our in-depth, in-house research, which includes visiting and meeting senior management of hundreds of companies each year. As well as being available on its own broker platform the Fundamental AIM IHT Portfolio service can also be accessed through the AXA Elevate, Nucleus, Standard Life and Transact platforms.

Open Open Offers Offers

EIS

Open

January 2015

Evergreen

Amount to be Raised: Unlimited

CHF Enterprises CHF Enterprises Ltd (CHF) presents an exciting and unique opportunity for UK tax payers to invest in both SEIS and EIS qualifying shows and concepts, whilst also benefitting from risk mitigation in the form of seed and traditional EIS reliefs and Government backed Animation Tax Credits. The company has a strong and proven track record: over the past 40 years, Cosgrove Hall have produced iconic children’s programmes such as Danger Mouse, Postman Pat, Roary the Racing Car and others, and CHF has a multi BAFTA and International Emmy award winning creative team. One of its recent shows, Pip Ahoy! was funded via CHF’s own in-house EIS offering and is now on air on channel 5’s Milkshake every weekday for 5 years, to great media acclaim.

T. +44 (0)845 512 1000 E. nicolajohnston@chfmedia.com www.chfenterprises.co.uk

EIS Open

24/04/2017

01/11/2017

Amount to be Raised: £1m Minimum Investment: £10,000

The shows and concepts may have multiple revenue streams from Broadcast and License and Merchandising sales with unlimited investment returns. Shows are produced in the UK and should qualify for the Government’s Animation Tax Credits.

International Ambulances Ltd International Ambulances Limited was formed in October 2016 by Phillip Bevan to commercialise his revolutionary new ambulance design, the “ACESO”, an all new innovative emergency ambulance that is designed from the ground up to save lives and provide demonstrably better outcomes for patients, paramedics and hospitals. Bevan Davidson International, a technology design and development company has been engaged in developing a concept prototype on behalf of the Company, using the extensive experience they have gained in vehicle concept design and development. The demands on the emergency services and ambulances have continued to grow. From a recent NAO report and Helen Hamlyn Centre for Design, there is a clear need and opportunity for an innovative ambulance that will achieve significantly better outcomes for patients.

T. 020 7071 3945 E. enquiries@growthinvest.com www.growthinvest.com

A&E departments are often overwhelmed with demand, with ambulances waiting to drop off patients. Surprisingly 48% of patients taken to A&E are not admitted to hospital. One of the key strategies of the government, NHS and ambulance services is to increase onsite and in community treatment, called the ‘See & Treat’ strategy. This can provide a better outcome/ experience for patients while significantly reducing the onward cost to hospitals. A next generation Ambulance must continue to save lives whilst also becoming a successful mobile diagnosis and treatment centre. An EIS opportunity available exclusively on the GrowthInvest platform.

GB Investment Magazine · November 2017

EIS Open

Evergreen

SEIS Close

Evergreen

Amount to be Raised: N/A Minimum Investment: £5,000

GrowthInvest - The Tax Efficient Platform for Advisers GrowthInvest is a unique, independent platform which provides access to tax efficient investments to a growing network of UK financial advisers, wealth managers and investors. Originally founded by financial advisers in 2012 as the Seed EIS Platform, we rebranded as GrowthInvest in October 2016 to better reflect the wider range of products and services available: We permit investment into a range of single company offers, as well as Managed EIS Portfolio Services and funds, giving clients a number of different investment options. • We offer a simplified asset transfer process which allows advisers to place all of their clients’ tax efficient investments onto the platform. • We provide intuitive online reporting tools, allowing advisers to monitor, analyse, and provide consolidated performance updates and quarterly reports to their clients. • All investable companies go through one of 3 defined due diligence tiers, giving added peace-of-mind to the adviser. • A single, secure online environment for all clients to review and build their tax efficient investment portfolios.

T. 020 7071 3945 E. enquiries@growthinvest.com www.growthinvest.com

EIS Open

April 2017

SEIS Close

Evergreen

Amount to be Raised:

Up to £25,000,000

Minimum Investment: £10,000

T. 020 7071 3945 E. enquiries@growthinvest.com www.growthinvest.com

GB Investment Magazine · November 2017

We’ve placed the adviser at the heart of everything we do, making it straightforward for advisers to improve the service they offer to their clients in the tax efficient investment arena. Please visit us at growthinvest.com for more details about our current open investment opportunities.

GrowthInvest Portfolio Service A discretionary investment management service which seeks to leverage the experience and expertise of the GrowthInvest investment team to select a diversified portfolio of some of the most promising companies that have passed through GrowthInvest due diligence process. GrowthInvest is an independent platform, which provides access to tax efficient investments to a growing network of UK financial advisers, wealth managers and investors. The platform aims to bring the advantages of early stage investing to a wider audience of investors and advisers, who are able to benefit from the potentially higher returns these companies can offer and tax efficiency via government approved schemes, such as SEIS and EIS. From our experience working with advisers on the Platform, the Fund has been designed to consist of three sub-funds, each with a separate investment policy. The first will target Investee Companies which qualify for SEIS Reliefs only. The second will target Investee Companies which qualify for EIS Reliefs only and the third will be a mixed investment policy which will target Investee Companies which qualify for SEIS Reliefs and / or EIS Reliefs. You will be able to choose how much of your subscription to allocate to each of these three sub-funds. The Fund is aiming to exit investments after three to seven years.

Open Offers

EIS

SEIS

Launch

12/09/17

05/03/18

Amount to be Raised: £3m Minimum Investment: £10,000

Cape Cod Cellars Ltd Cape Cod Cellars, “Martha’s Other Vineyard” is a new company created to build Cape Cod Cellars (“CCC”), into a premier aspiration, lifestyle brand. We will deliver the Nantucket, Martha’s Vineyard and Cape Cod seafood and lifestyle cuisine to London and Europe. We will deliver this feeling to our consumers through our flagship Cape Cod Cellars Café & Wine Bar, our Apparel and Merchandise and eventually, distributing our own wine brands (Chatham Chardonnay, Nantucket Red, Schooner’s Sauvignon Blanc etc.). Our online marketplace will be commensurate with the themes of the flagship Cape Cod Cellars Café & Wine Bar and, in particular, a scalable aspect of the business. Already in production, our golden silk scarves with the Cape Cod Cellars brand to cuff links, necklaces, wind breakers, even corduroys with our logo lining the pockets, Cape Cod Cellars will be hip, smart, cool and upscale.

T. 07917 767 362 E. tim@capecodcellars.co.uk www.capecodcellars.co.uk

DMS Open

January 2015

Evergreen

Amount to be Raised: Unlimited Minimum Investment: N/A

When a couple or a group of friends walk into our landmark CCC Café & Wine Bar, we want them to travel back to a time of their childhood or adulthood, fondly recalling great memories on Nantucket, Martha’s Vineyard or Chatham. Wide brown wood floors will be complimented with nautical oil paintings, dunes, red picket fencing, images of lighthouses, and a sailboat hanging from the ceiling. Above the circular, mahogany bar will be portholes with waves flowing behind them. It will be bright, optimistic, memorable and upscale. For Barclays banking details, email tim@capecodcellars.co.uk

Property Partner Discretionary Managed Service (DMS) Property Partner is the UK’s largest property investment platform and stock exchange, allowing investors to take a view on property assets, diversify their portfolio easily, and manage their market exposure at the click of a button. Residential property is a popular investment with a strong track record, but it is not always easy to access. Our purpose is to bring accessibility, simplicity, and liquidity to this asset class. Our proposition makes it really simple for investors to diversify across multiple properties, in multiple locations, with multiple tenants, thereby reducing risk, and also removing all of the hassle associated with traditional buy-to-let. This includes tenant management, ongoing maintenance, and the significant legal and administrative burdens. Property Partner’s Discretionary Managed Service allows your clients to own their share in a number of properties of their choosing, in line with specific investment criteria. Investors will also earn 5% interest on un-invested capital. Income is paid monthly in the form of a dividend, and investors can sell their holdings whenever they like on the resale market. Property Partner is the new way for advisers to engage with clients about buy-to-let. Please get in touch for more details about how to apply.

T. 0203 457 2471 E. john.oliver@propertypartner.co www.propertypartner.co

Property Partner™ is the trading name of London House Exchange Limited, which is authorised and regulated by the Financial Conduct Authority (No. 613499). Capital at risk. The value of your investment can go down as well as up. The Financial Services Compensation Scheme (FSCS) protects the cash held in your Property Partner account, however the investments that you make through Property Partner are not protected by the FSCS in the event that you do not receive back the amount that you have invested. Forecasts are not a reliable indicator of future performance. Gross rent, dividends and capital growth may be lower than estimated. 5 yearly exit protection or exit on platform subject to price & demand. Property Partner does not provide tax or investment advice and any general information is provided to help you make your own informed decisions. Customers are advised to obtain appropriate tax or investment advice where necessary.

GB Investment Magazine · November 2017

IHT Open

October 2014

Open-ended

Amount to be Raised: Unlimited Minimum Investment: £15,000

Puma AIM Inheritance Tax Service Puma AIM Inheritance Tax Service is an award-winning discretionary portfolio service that seeks to mitigate IHT by investing in a carefully selected portfolio of Alternative Investment Market (AIM) shares. Since launch in 2014, the Service has 3 years out performance of the FTSE AIM All Share Index (+44.37% out performance since inception). • Focus on defensive growth: Investments selected on a strict, research driven criteria. • Inheritance Tax: The investment is intended to benefit from IHT relief after a two year holding period. • Experienced Team: Led by Investment Director with 18 years of experience specialising in small and mid-cap companies. • Available in ISAs: Investing in a portfolio of qualifying AIM stocks, allowing investors to mitigate IHT while retaining the benefits of an ISA. • Quality companies: Seek to invest in quality companies with strong margins, good returns and a track record of cash generation. • Portfolio construction: Targeting approximately 20 companies with market capitalisation in excess of £50 million and low portfolio turnover.

T. 020 7408 4070 E. info@pumainvestments.co.uk www.pumainvestments.co.uk

VCT Open

Sept 2017

April 2018

Amount to be Raised: £30m Minimum Investment: £5,000

• Platform access: Financial advisers can access the service via the following Wrap Platforms - Ascentric, Standard Life and Transact. This advert is aimed at financial advisers only and is not intended for retail clients. Puma Investments is a trading name of Puma Investment Management Limited which is authorised and regulated by the Financial Conduct Authority. For more information, including the risks, please visit our website.

Puma VCT 13 Puma VCT 13 will build on our investment team’s proven track record investing in growth businesses. Core Focus: Proven investment team investing in growth businesses with strong management teams and proven track records, seeking to generate stable returns for investors Tax Benefits: Up to 30% income tax relief for eligible UK tax-payers provided Shares are held for at least five years. Both dividends received and any capital gains made upon the disposal of Shares are also tax free Limited Life: Seeking orderly wind up within 8-10 years, or earlier if market conditions present such an opportunity, subject to shareholder consent Target Tax Free Dividend: Target average annual dividend of 5p per share, per year, starting April 2020. Experienced Team: The Investment Team has a 21 year track record of investing in SMEs.

T. 020 7408 4070 E. info@pumainvestments.co.uk www.pumainvestments.co.uk

GB Investment Magazine · November 2017

Note: Tax reliefs are not guaranteed and depend on the individual investor’s circumstances and may be subject to change. This financial promotion has been issued by Puma Investments Management Limited which is authorised and regulated by the Financial Conduct Authority (FCA). This promotion is directed at investment professionals. For more information, including the risks, please visit info@pumainvestments.co.uk

Open Offers

IHT Open

June 2013

Open-ended

Amount to be Raised: Unlimited Minimum Investment: £25,000

Puma Heritage plc Business Relief Qualifying Offer: Puma Heritage plc’s core focus is on first charge secured property lending. It’s primary objectives are to preserve capital and mitigate risk whilst generating stable, asset-backed returns for shareholders. • Inheritance Tax: It is intended that a subscription for shares in Puma Heritage plc will benefit from Inheritance Tax relief, provided the shares have been held for at least 2 years at the point of death. • Investment Strategy: Conservative trading strategy focused on secured asset-backed lending. • Flexibility: Choice of income or growth shares, and ability to switch between them. • Prospectus approved: Prospectus approved by UKLA. • Experienced adviser: Puma Heritage has appointed Puma Investments as its trading adviser.

T. 020 7408 4070 E. info@pumainvestments.co.uk www.pumainvestments.co.uk

EIS Open

01.04.2017

31.12.2017

Amount to be Raised: £3.6m Minimum Investment: £25,000

• Aligned interests: Puma Investments will not receive any performance fees, and its annual advisory fees are only paid in full if a minimum annual return of 3% is achieved. This advert is aimed at financial advisers only and is not intended for retail clients. Puma Investments is a trading name of Puma Investment Management Limited which is authorised and regulated by the Financial Conduct Authority. For more information, including the risks, please visit our website.

Ober Private Clients – Fairy Tale of New York Starring Golden Globe winning actor, Kiefer Sutherland (24, Flatliners, Stand By Me, Lost Boys, A Few Good Men and Young Guns) and Kate Bosworth (Superman Returns, Still Alice and Heist), as well as an ensemble of other A-List actors, Fairy Tale of New York is a modern love story based upon the most popular Christmas song of the 21st Century. The world-class film makers, including award winning director, Lee Cleary (Hurt Locker, the X-Men films and Fantastic Four), and producer, Lisa Katselas, (producer of twice Oscar nominated Richard III), are positioning the film to appeal to a broad international audience, aided by the strong brand recognition of the title song and the extensive fan-bases of the cast. Fairy Tale of New York is expected to capture the lucrative seasonal market at Christmas time for many years to come, as one of the few credible festive films available. The subject-matter of the film also assists with the generation of ancillary revenues from soundtrack, merchandise and other commercial activities. As a film that key cast and crew are deeply passionate and confident about, a large proportion of its costs have been substituted for equity, resulting in a budget that is significantly below production value. Investors also benefit from a priority mechanism to the point they have recouped 130% of gross capital as well as an uncapped share of the upside.

T. 0333 939 8533 E. lizz.ewart@oberprivateclients.com www.oberprivateclients.com

For more information on this opportunity and other opportunities offered by Ober Private Clients, please contact Lizz Ewart: lizz.ewart@oberprivateclients.com THIS IS NOT A FINANCIAL PROMOTION

GB Investment Magazine · November 2017

EIS

SEIS

Open

Now

N/A

Amount to be Raised: £5m Minimum Investment: £15,000

T. 01865 784466 E. info@oxfordtechnology.com www.oxfordtechnology.com

EIS Open

July 2017

June 2018

Amount to be Raised: £20m Minimum Investment: £50,000

Oxford Technology Combined SEIS and EIS Fund OT(S)EIS invests in high risk high reward technology start-ups, in general within an hour’s drive of Oxford and has been doing this since 1983. The latest fund OT(S)EIS made its first investment in 2012. By 30 June 2017, 70 investments had been made in 28 companies. The statistics are: • Gross amount invested £3.75m • Tax refunds to investors £1.52m • Net cost of investments £2.23m • Fair value £6.26m • Tax free gain (on paper only) £4.03m OT(S)EIS remains open for investment at any time. The latest quarterly report, with a page of information on each investment is downloadable from www.oxfordtechnology.com

Calculus Capital EIS Fund Pioneers of tax efficient investing, Calculus Capital created the UK’s first approved EIS Fund in 1999. Our 18 year track record of investing in growing UK companies assures investors of our ability to make sensible investments capable of delivering excellent returns at every stage of economic cycle. Winners of ‘Best EIS Fund Manager’ at the EIS Association Awards for the past three consecutive years, Calculus Capital are recognised as having an incredibly robust investment process and an active portfolio management style - which has led to an impressive track record of successful exits. The Calculus EIS Fund focuses on established companies with growth potential, across a diverse range of sectors. Target companies have the following characteristics: • The ability to achieve our target IRR of 20% • Experienced management teams • Successful sales of proven products or services • Profits or a clear path to profitability • Clear route to exit

T. 020 7493 4940 E. info@calculuscapital.com www.calculuscapital.com

GB Investment Magazine · November 2017

The 18 month investment programme commences after relevant closing date. The next close is taking place October 27th 2017. We value our reputation for personal service as much as our investment record, and are focused on providing an excellent client experience. Please get in touch to find out more. 020 7493 4940.

Open Offers

EIS Open

Now

SEIS Open

Now

Amount to be Raised: Uncapped Minimum Investment: £5,000

Seed Advantage SEIS and EIS Funds Seed Mentors has been successfully involved in Seed EIS since it was first introduced in 2012. Since then they have successfully promoted and closed 11 funds, and invested in over 60 exciting young companies. All companies continue to trade. The fund structure is a discrete investment portfolio service operated through the Fund Manager, Amersham Investment Management Ltd. The Funds adopt as whole of market, holistic approach. Seed Mentors provide practical support and mentoring services to each company and a nominated director. The EIS fund offers the opportunity to support companies that have previously received SEIS funding, and are now looking for capital for growth and expansion.

T. 0203 011 0901 E. s.randall@seedmentors.co.uk www.seedmentors.co.uk

EIS Launch

May 2017

SEIS Close

Evergreen

Amount to be Raised: £5m Minimum Investment: £10,000

Seed Mentors have now extended the range of funds on offer with the Boxing Advantage Company. In a joint venture with the legendary Barry McGuigan, investors can invest in a portfolio of highly promising boxers through the Seed Advantage EIS Fund. The boxers will be selected and trained by Barry McGuigan and his team.

Jenson SEIS & EIS Fund The Fund targets exciting, innovative and disruptive technologies that are nurtured alongside existing investments (in the current SEIS investee company portfolio) which are ready for follow-on funding to fully exploit commercialisation of a proven business model, via the EIS. Our combined SEIS and EIS structure is designed to provide increased diversification as a portfolio investment; whilst the balance between capital growth, portfolio risk and time horizon is maximised, along with enhancing the tax advantages available. Jenson is a pioneer of SEIS Investments, investing since 2012 and with over 80 investments (£12 million) to date. They actively advise entrepreneurs to re-evaluate business models, reduce projected costs and introduce potential executives, partners, customers and suppliers as part of the value add service they provide. Jenson aims to offer these businesses far more than just funding.

T. 020 7788 7539 E. seis@jensonsolutions.com www.jensonfundingpartners.com

The Investee support programme provides financial and operational assistance to investee companies - enhancing returns, a key differentiator between Jenson and other SEIS and EIS providers. The Jenson SEIS and EIS Fund allows investors to choose whether they want to invest solely via SEIS or EIS or to split their funds across SEIS and EIS investments, enabling the investor to maximise the tax advantages.

GB Investment Magazine · November 2017

EIS Open

Now

N/A

Amount to be Raised: £4m Minimum Investment: £10,000

T. 0203 8978 861 E. sarah@goldfinchentertainment.com www.goldfinchentertainment.com

SEIS Open

Now

Multiple

Amount to be Raised: £3m Minimum Investment: £5,000

Goldfinch Entertainment EIS Fund • Approved EIS Fund with 70% Protection • Investing into qualifying Film & TV productions • Protection is taken in the form of unsold territories, Government Tax Credits or guarantees • £2m raised in 2015/16 • Built and run by a team with enviable business and industry experience • Team has deployed £60m+ since inception • Over 115 projects at various stages of development and financing • BAFTA and Oscar winning producers and directors • A List cast attached such as Orlando Bloom, Bill Nighy, Sir John Hurt, Charles Dance, David Tennant and Martin Freeman • Shortlisted TWICE CONSECUTIVELY for the ‘Game Changer’ Growth Investor Award • Managed by industry veterans Amersham Investment Management

Goldfinch Entertainment SEIS Fund • Approved SEIS Fund qualifying investment opportunities in the UK’s film, TV and other entertainment sectors. • Investing into UK Film (30%), TV (30%) and Video Games (30%) • £2.5m raised in 2015/16 • Built and run by a team with enviable business and industry experience • Team has deployed £60m+ since inception • Over 115 projects at various stages of development and financing • BAFTA and Oscar winning producers, directors and developers.

T. 0203 8978 861 E. sarah@goldfinchentertainment.com www.goldfinchentertainment.com

GB Investment Magazine · November 2017

• A List cast attached such as Orlando Bloom, Bill Nighy, Sir John Hurt, Charles Dance, David Tennant and Martin Freeman • Shortlisted TWICE CONSECUTIVELY for the ‘Game Changer’ Growth Investor Award • Managed by industry veterans Kin Capital Partners

Open Offers

IHT Open

Evergreen

BPR Close

Evergreen

Minimum Investment: £20,000

ESP AiM ESP AiM is a simple estate planning solution that provides full inheritance tax relief after two years. Stellar employs award-winning stockbroker Pilling & Co to create a diversified portfolio of mature AiM listed companies. ESP AiM is one of the most diversified portfolios currently available; with 40 companies held across eight of the ten major AiM sectors. With a focus on wealth preservation, ESP AiM holds established AiM companies with an average market cap of more than £600m. ESP AiM has a nine-year performance track record and has consistently out-performed the AiM index since 2010, with growth of 130% over the last five years. Available in an ISA wrapper, clients can keep their existing ISA benefits to create a tax-efficient portfolio free from income, capital gains and inheritance tax.

T. 020 3907 6984 E. enquiries@stellar-am.com www.stellar-am.com

IHT Open

Evergreen

BPR Close

Evergreen

Minimum Investment: £25,000

ESP AiM is available on a high number of wrap platforms to make it even easier for advisers to consolidate clients’ existing portfolios for estate planning. Investors can also choose to insure their investment from day one with our ESP AiM+ option.

ESP Income ESP Income is unique in the marketplace because it helps clients mitigate their inheritance tax liability without sacrificing a regular income stream to support their lifestyle. Structured as a discretionary portfolio that generates a regular income of 4.5% per annum, in addition to providing full inheritance tax relief after two years. Capital is diversified across trading activities that offer a high level of capital security and the ability to generate a natural yield. Currently these sectors include hotels, renewables and construction finance. Income is paid as a dividend and distributed to investors twice a year. It is important to note that the underlying investments generate the income investors receive and it is not a distribution of capital, therefore the principal investment amount is protected to be passed on to beneficiaries.

T. 020 3907 6984 E. enquiries@stellar-am.com www.stellar-am.com

With an increasing life expectancy in the UK, later life income is becoming more important to some clients. ESP Income can help clients seeking to supplement their pension income, as a replacement to ISA income or as an alternative to an annuity.

GB Investment Magazine · November 2017

IHT

BPR

Open

Evergreen

Minimum Investment: £40,000

ESP Growth ESP Growth is one of the most diversified asset-backed IHT portfolios available and clients can access six trading areas that are uncorrelated to equities and offer a high level of security with low volatility to minimise investment risk. It has been carefully designed for clients seeking inheritance tax relief after two years with a focus on wealth preservation and capital growth. These trading activities include commercial forestry, farming, hotels and residential development; importantly investors can choose to exclude any trades they want, to avoid over-exposure. ESP Growth is structured so that the client is in full control of their capital. On application we incorporate a trading company in your client’s name of which they are the sole shareholder. Capital is then invested in a diversified blend of trading activities which all qualify for full inheritance tax relief after two years.

T. 020 3907 6984 E. enquiries@stellar-am.com www.stellar-am.com

SITR Open

Feb 2016

Evergreen

Amount to be Raised: £5m Minimum Investment: £25,000 (smaller investments accepted at Fund Manager’s discretion)

The single company structure of ESP Growth makes it easy for clients to earmark legacies for their children by creating separate companies for each child to inherit. ESP Growth has a net target return of 5% per annum and this is uncapped so if the trading assets outperform this target, your clients will reap the rewards.

Resonance Bristol SITR Fund The Resonance Bristol SITR Fund is one of the first investment funds in the country to benefit from Social Investment Tax Relief (SITR), enabling investors to build a portfolio of investments with the potential for attractive returns and tax relief benefits, whilst also helping to dismantle poverty in and around the City of Bristol through investing in the growth of high impact, mission-driven social enterprises. SITR offers similar tax reliefs to those available through the Enterprise Investment Scheme (EIS), including a 30% income tax relief. The key innovation is that SITR is available on debt, as well as equity. This means that debt focused SITR Funds can offer the flexible, affordable loan capital that social enterprises require to grow their businesses and social impact, whilst also offering investors a more predictable income profile and exit route compared to equity based Funds. Resonance has over 15 years of experience in arranging investment into social enterprises, and now has over £150m under management through seven social impact investment Funds. These funds deliver financial return as well as targeted social impact in a range of areas - from tackling homelessness to health inequalities.

T. 07718 425 306 E. grace.england@resonance.ltd.uk www.resonance.ltd.uk

GB Investment Magazine · November 2017

After a successful first 12 months of the Resonance Bristol SITR Fund, Resonance is also now launching a series of regionally focused SITR Funds across the UK (the next being launched in the West Midlands in Autumn 2017).

Open Offers

EIS Open

07.04.17

06.04.18

Amount to be Raised: £10m Minimum Investment: £20,000

Guinness AIM EIS The Guinness EIS seeks to invest in at least 10 investee companies to create a portfolio of investments across a range of sectors. It targets AIM quoted companies with the flexibility to invest up to 20% in the NEX growth market and pre-IPO. The AIM EIS closes annually on 6th April for investment in the subsequent 12 months in newly issued AIM stocks that have EIS Advance Assurance in place and targets a return of £1.30 per £1.00 invested net of all fees. The Guinness AIM EIS is an HMRC approved fund so that investors receive 1 EIS 5 certificate for all holdings once the portfolio is invested.

T. 020 7222 3475 E. shane.gallwey@guinnessfunds.com www.guinnessfunds.com/eis

EIS Open

19.09.16

Evergreen

Amount to be Raised: £40m Minimum Investment: £20,000

The AIM market is relatively liquid and provides a natural exit route with the intention to exit shares held soon after the EIS 3 year holding period. For this service, Guinness will defer all fees until exit, which maximises the amount on which investors can claim EIS tax reliefs.

Guinness EIS The Guinness EIS seeks to invest in three to six investee companies to create a portfolio of investments across a range of sectors. Characteristics favoured by the investment management team are as follows: • Businesses in leisure and services sector with strong balance sheets. Examples include gyms, trampoline parks, pubs, crematoria and nurseries. • Businesses with good visibility on cashflows - i.e. businesses with longer term contracts to provide predictability of future earnings. Examples are waste management, recycling or data centres.

T. 020 7222 3475 E. shane.gallwey@guinnessfunds.com www.guinnessfunds.com/eis

• Businesses requiring capital to purchase stock and equipment. Successful businesses often require additional funds to expand their working capital. We prize businesses with high value stock such as luxury goods dealers. The Guinness EIS is an Evergreen service with tranche closures at the end of each quarter.

GB Investment Magazine · November 2017

Open Offers

EIS Open

Now

Evergreen

Amount to be Raised:

£50m per tax year

Minimum Investment: £25,000

Parkwalk Opportunities EIS Fund Parkwalk Opportunities EIS Fund is a multi-award winning fund that focuses on investing in the UK university spin-out asset-class. The Fund targets capital growth for investors, by building a diverse portfolio of high-growth, ‘knowledge intensive’ technology businesses, which are underpinned by patent protected intellectual property (IP). Why invest? • Strong performance, track record of returning full subscriptions plus gains within 4-5 years. • Diverse portfolio of at least 5 investments, from early-stage university spin-outs through to AIM-listed. • Quick deployment, average 9 months for full subscription investment (as at Sept 2017). • Co-invests alongside institutional investors e.g. Invesco Perpetual, IP Group Plc and Woodford. • Strong deal flow from relationships with Cambridge, Oxford and Bristol University. Winners of ‘Best EIS Fund Manager’ at EISA Awards 2016 & ‘Best Generalist’ at the Investment Week Awards 2016, Parkwalk are recognized as having delivered some impressive returns to investors. Further details on performance can be found at: http://parkwalkadvisors.com/pw_performance/

T. 0203 743 3100 E. info@kincapital.co.uk www.kincapital.co.uk

GB Investment Magazine · November 2017

For more information, please don’t hesitate to contact the Kin Capital sales team who would be delighted to help with any sales queries, meetings or events on 0203 743 3100. Please refer to the Investment Memorandum for full details and risk warnings.

Helping you support your clients’ needs About TIME Investment solutions covering tax planning and income

21 year track record of successfully achieving IHT savings for our investors

Sleep at night philosophy

Nationwide distribution team of 25

Over £600 million assets under management

In house team of 19 investment specialists

Income focused funds

IHT Solutions: IHT Solutions: Capital Preservation Growth oriented

Three long income property funds enabling investors to access new sectors to help diversify their portfolios. Our portfolio includes commercial property and social infrastructure investing. All funds have consistently delivered attractive, above target returns and continuous monthly liquidity.

Solutions that allow investors to access Business Property Relief (BPR) to mitigate their IHT liabilities. Our IHT services include two award winning capital preservation solutions for both private and corporate clients that focus on investing in asset backed businesses.

An innovative ‘smart passive’ ISA qualifying, growth option that selects BPR qualifying AIM listed companies, seeking to deliver IHT relief in just two years with attractive returns and lower volatility than the AIM market.

If you would like to find out more about any of our investment solutions, please contact us on 020 7391 4747 questions@time-investments.com time-investments.com This notice is aimed at financial advisers only and is not intended for retail clients. TIME Investments is a trading name of Alpha Real Property Investment Advisers LLP and is authorised and regulated by the Financial Conduct Authority.

Make It Your Business

The tax efficient investment market has changed significantly in recent years. There has never been a better time to get involved, as high value clients are gaining interest in this sector and it’s exactly where you can add tangible value. Complex structures and investments with higher risk profiles mean that clients would benefit from your advice. Without it, they may invest anyway and could make ill-informed decisions, whilst dis-intermediating you from the process and reducing your revenue potential. Whether you’re already advising on SEIS, EIS, BPR or VCT products, or perhaps considering them for your clients’ portfolios then contact us at GrowthInvest. We’ll show you how you can consolidate historic investments onto our platform and build a diversified portfolio from a wide range of managed fund or single company investments. Through our intuitive online platform you’ll be able to offer your clients exclusive access to real portfolio growth, secure in the knowledge that these government-backed schemes offer unique tax efficiencies. Visit us to learn about the products, the pitfalls and how best to advise on this dynamic and evolving sector. So make it your business, before someone else makes it theirs... Find out more at growthinvest.com