To be managed by Paul Sheehan, the fund will operate in partnership with EIS specialists Harcourt Capital. ~
In supporting the growth of smaller UK companies, the fund will target £5m to £20m valuations at investment, with the aim of realising valuations of £30m to £50m on exit.
The vehicle will invest only in quoted companies, primarily those listed on AIM, while the focus will be on established businesses with a proven track record, strong finances and a clearly articulated growth strategy.
The closing date for the fund is 5 April, 2012, and the minimum investment is £10,000.
EIS is a government initiative aimed at encouraging individuals to invest in smaller British companies. It offers the investor substantial tax incentives that have particular attraction for higher rate taxpayers.
Benefits of investing in companies under the scheme include 30% upfront income tax relief on contribution, capital gains tax exemption and up to 100% inheritance tax relief if held for two years. Investments have to be held for three years to qualify for the full range of reliefs.
Sheehan said: “We believe that because of the technical challenges of making and managing investments in smaller, often under-researched companies, investment through a high quality fund is the most suitable way for many investors to benefit from EIS.”
