Hargreaves Lansdown is teaming up with venture capital group ProVen to offer retail access to a vent...
Hargreaves Lansdown is teaming up with venture capital group ProVen to offer retail access to a venture capital fund in late September.
The fund, Global Rights II, will be structured as a limited partnership. It will provide backing for unquoted companies that generate, own and exploit intellectual property rights in the media, entertainment, information, communication and leisure industries.
Gordon Power, chief executive at ProVen, who runs the new fund's predecessor Global Right will be the investment manager with assistants in London and the US. ProVen will be involved in the management of any company which is backed by the fund.
Hargreaves Lansdown is hoping to have a structure in place for September but plans are not yet finalised. The structure may take the form of a feeder fund or a nominee arrangement with private clients. Because the fund invests in unquoted companies the regulatory and marketing process is more lengthy and complicated than normal.
Stephen Lansdown, director at Hargreaves Lansdown, said: "This is not like a normal fund where you have a three-week launch period we will be drawing money in for some time.
"We will be looking for cash commitments initially and then wait for the programme to get underway. We will try to incorporate EIS relief if possible.
Lansdown added that this type of investment should be an additional part of an investor's portfolio, not a core holding, as it is long-term and illiquid which is why only institutions have traditionally invested in this area. The investment process is to collect money, find and invest the money in a company and then wait several years until the company is sold or floated to realise gains.
He said: "You can't really compare this to other types of retail investment. It is similar to a VCT but better because you don't have discounts to NAV and restrictions on how long you can hold the investment for.
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