Februar y 2019
CALCU LUS
Learning from
EXPERIENCE Sue Whitbread talks to Richard Moore, Co-Head of the Investments team at Calculus Capital, about how the company operates and why its 20 years of experience is invaluable in helping the group to deliver effective EIS and VCT solutions for advisers and their clients
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alculus are pioneers of the EIS industry, having launched the UK’s first approved EIS Fund in 1999, it is the longest established EIS fund manager. At its heart, Calculus offers growth and scale-up capital to later stage, world class businesses. Its focus has remained consistent over the years: building diversified portfolios of smaller, UK growth businesses and creating value for investors. Drilling down a little more, advisers will see that Calculus is a diversified, later-stage growth investor. Over recent years the firm has increasingly focused on the healthcare and technology sectors as this is where they believe prospects for well above average growth potential are coming from. This also conforms with the government’s enhanced terms for ‘knowledge intensive companies’ announced in the autumn 2017 budget. These companies, often in the healthcare and technology sectors, have seen a doubling in the amount of EIS funding they are allowed to take; from £5million to £10million. In 2019, the firm expects a continuation of the long-term shift towards businesses in technology and healthcare, although they are still committed to the principles
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and practice of diversification so other sectors will be represented in portfolios. As Moore explains, “This year sees our 20th anniversary so we’ve been around a long time. I’d say that our USP is definitely focused around the age and experience of the firm, especially given the ever-changing scenario for EIS. This first-hand experience becomes increasingly important in ensuring successful growth investing.’ GOING FOR GROWTH EIS and VCT schemes enjoy generous tax breaks of course. However, the quid pro quo of providing that support is that the Government wants to direct the investment towards growth companies and those focused on the knowledge-intensive sectors. As Moore comments ‘each year they tweak the rules a little bit, to make sure that funds are going to businesses which are going to grow, employ people and thereby boost overall economic growth. The good news for us is that this has always been our strategy. ‘We’ve always worked within the spirit of the EIS rules, investing in companies that genuinely have the opportunity
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