A limited partnership fund has been launched by a consortium of venture capitalists, targeting in...
A limited partnership fund has been launched by a consortium of venture capitalists, targeting investments in unlisted enterprises.
The Beer Enterprise fund is being run by Enterprise Private Capital (EPC) and Innvotec, along with business angels Beer & Partners.
Richard Harris, EPC's chief executive and former CEO of Jardine Fleming Private Bank, will lead the investment team.
'UK taxpayers can take advantage of capital gains taper relief as the limited partnership structure is tax efficient,' said Harris. 'Investors are also able to take advantage of EIS tax benefits because when the fund invests in EIS-approved companies, these will be held in a tax efficient fund for investors' benefit.'
Harris said the P/E ratios in early stage companies are naturally low, around four to five times, because of the risks involved, making them attractive buys.
There is a growing desire by investors to increase exposure to alternative investments that are less impacted by the global stock market movements, according to Harris. Many of these companies are well established, with good revenues and could grow rapidly, with a relatively low level of expansion capital, he added.
'Only dynamic, well-managed, unquoted British businesses with low P/E ratios and strong growth prospects will be selected,' Harris said. 'Approximately £500,000 will be invested in each business, with the investment team adding value until they can be sold or listed on publicly traded markets.'
The fund will not commit more than 25% to any one sector and will be an active investor, with benchmarking and investor directors to monitor the management team. The structure of the fund allows for redemptions and as successful companies are sold, cash proceeds will be distributed. Investors may also be able to transfer their partnership interests to other investors.
Minimum investment in the fund is £50,000. The front-end fee and annual charge are both 3% and there is a performance charge of 20% on gains. The closing date for investment in the fund is 5 April and further subscriptions can be made quarterly from 30 June.
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