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Committed Capital EIS Growth Portfolio Service - Professional Investor (PI)
- Committed Capital Financial Services Limited
- Technology
- EIS
Don’t invest unless you’re prepared to lose all the money you invest. This is a high risk investment and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more.
Committed Capital invest in post revenue (£1m+), high growth EIS qualifying technology companies with HMRC advance assurance, across a range of industry sectors where the potential for significant capital growth exists.
Our primary objective is to create attractive returns for investors from high quality investments; through the careful selection of potential investee companies, excellence in corporate finance skills and active support of portfolio companies.
Track Record - Since 2001 we have achieved an average 2.6 x ROI (excluding tax reliefs) for investors with an average holding period of 4.5 years, and have invested in 34 EIS qualifying investee companies, made 24 exits. Out of these 24 exits, 21 have been profitable, 1 has made a loss, and 2 have made a partial loss.
Based upon British Private Equity & Venture Capital Association 'BVCA' data for 560 funds in total, top decile performance is achieved by those venture capital funds with an IRR of 19.6% or greater. The performance of our Growth EIS fund (launched Dec 2014) compares favourably with this with an average 3x ROI (excluding any tax reliefs) and a 36.8% IRR for investors with an average holding period of 4.5 years. To date, the fund has invested in 16 companies, made 5 profitable exits, and 2 small losses. This is in line with the Fund’s target of 2-3x ROI (excluding any tax reliefs) and well ahead of the target 25% IRR.
Investment Strategy - We are very hands on investors and sit on the boards of our investee companies. We like companies that have proven products and services, and so only invest in post revenue (£1m+), growth stage UK based technology companies across a number of sectors. Investee companies must have an established market stategy, multiple client contracts in place, a solid pipeline of sales, proven management and a robust and demonstratable growth strategy.
Targeted Returns - 2-3x ROI (excluding any tax reliefs).
Diversified Portfolio - Investors are typically allocated a portfolio of 8-12 investee companies in around 6-12 months (or less if the investor prefers).
Third Party Reviews - MICAP, Allenbridge, Hardman & Co and Tax Efficient Reviews are available.
Highlights
- Investment Strategy - Post revenue (£1m+), growth stage UK based technology companies across a number of sectors. Investee companies must have multiple client contracts in place, a solid pipeline of sales, proven management and a robust and demonstratable growth strategy.
- Track Record – Since 2001 we have achieved an average 2.6 x ROI (excluding tax reliefs) for investors with an average holding period of 4.5 years, and have invested in 34 EIS qualifying investee companies, made 24 exits. Out of these 24 exits, 21 have been profitable, 1 has made a loss, and 2 have made a partial loss. Based upon British Private Equity & Venture Capital Association 'BVCA' data for 560 funds in total, top decile performance is achieved by those venture capital funds with an IRR of 19.6% or greater. The performance of our Growth EIS fund (launched Dec 2014) compares favourably with this with an average 3x ROI (excluding any tax reliefs) and a 36.8% IRR for investors with an average holding period of 4.5 years. To date, the fund has invested in 16 companies, made 5 profitable exits, and 2 small losses. This is in line with the Fund’s target of 2-3x ROI (excluding any tax reliefs) and well ahead of the target 25% IRR.
- Targeted Returns - 2-3x ROI (excluding any tax reliefs).
- Minimum Investment - £15,000
- Diversified Portfolio - Investors are typically allocated a portfolio of 8-12 investee companies in around 6-12 months (or less if the investor prefers).
- National Investor – We invest across the UK.
- Advance HMRC Assurance - We only invest in companies with advance EIS assurance from HMRC.
- Third Party Reviews - MICAP, Allenbridge, Hardman & Co and Tax Efficient Reviews are available.
- Closing Dates - This is an evergreen fund with monthly tranche closes. Next tranche close is typically the last working day of the month.
Market approach
We are very hand on investors, and invest in post revenue (£1m+), high growth technology companies across a range of industry sectors where the potential for significant capital growth exists.
Our primary objective is to create attractive returns for investors from high quality investments; through the careful selection of potential investee companies, excellence in corporate finance skills and active support of portfolio companies.
Financial overview
Since the launch of the current EIS Funds in Dec 2014, we have achieved an average 3 x ROI and a 36.8% IRR (excluding any tax reliefs) for investors from exits to date and have invested in 16 companies.
Investment strategy
We are hands on investors and work with business owners to unlock and accelerate profitable growth in portfolio companies. In analysing potential investee businesses, we look for rapid growth in the underlying market as well as a technology and business designed to benefit from this growth. Our investee companies must have a clear and compelling proposition, be fully formed and have strong management. These factors are established during an exhaustive due diligence process.
Investments are selected based on the following criteria:
• Dynamic Market – fast growing addressable market with low competitive intensity
• Well-Positioned Company – strong management team, robust forecasts for rapid growth over the investment period and clear potential for exit
• In-Demand Product – (or service) fully developed, addressing a clear market need, with a sustainable technology-based competitive advantage
• Post Revenue – generating significant sales (typically in excess of £1m annually)
• Investor Protections – a significant minority (often 20-40%) of the equity sought, and a board seat and typical shareholder rights required.
Portfolio companies
Key team
Steve Harris - CEO
Steve joined Committed Capital in 2004 as CEO and is Committed Capital’s largest shareholder. He has spent nearly 30 years in investment and corporate finance. Initially a corporate financier at HSBC, Steve became a Director of Corporate Finance at Société Générale and later, Head of Mergers and Acquisitions at PA Consulting.
In the early years of the internet, Steve was Investment Director at antfactory and Finance Director of its investment bank. Antfactory was a start-up internet incubator, which grew to become one of the UK’s leading technology investment vehicles with a US$600m technology-focused private equity fund.
Steve holds an MBA from London Business School and a BA Hons in Modern History from UCL. Steve attended the Royal Military Academy Sandhurst and was an officer in the British Army.
Tim Steel - Chairman
Tim is non-executive Chairman of Committed Capital and chairs the Advisory Board. Tim was Vice Chairman of Cazenove until early 2010 when he stepped down to pursue a portfolio career and work more closely with smaller developing businesses.
Tim joined Cazenove in 1980 from Robert Fleming and became a partner in 1982. He was appointed Managing Director of Cazenove Fund Management Limited in 2000, then became Chairman in 2001, and was appointed to the main Board of Cazenove Group plc. Tim holds an Honours Degree in Philosophy and Law from Cambridge University.
Else Thomson - Director – Head of Finance
Else is Head of Finance, Investment Director with some of our portfolio companies and is on the CC Investment Committee.
After qualifying as a chartered accountant with PWC, Else worked in the London corporate finance departments of Handelsbanken and then Islandsbanki, predominantly advising companies in the TMT and healthcare areas. She joined Committed Capital in 2005.
Else holds an Honours Degree in Natural Sciences from Cambridge University and is a Chartered Accountant.
Glen Stewart - Head of Intermediated Capital Raising
Else joined Committed Capital in 2005, as head of finance and now works also with investee companies.
She originally joined Committed Capital in 2005 as a corporate financier and financial controller.
After qualifying as a chartered accountant with Coopers & Lybrand, Else worked in the London corporate finance departments of Handelsbanken and then Islandsbanki, predominantly advising companies in the TMT and healthcare areas.
Else holds an Honours Degree in Natural Sciences from Cambridge University and is a Chartered Accountant.
Exit strategy
The intention is to exit within 4 to 5 years of monies being invested via trade sale, IPO, or where appropriate, a sale to a strategic investor.
Historically our exits have been achieved through a trade sale or sale to a strategic investor.
Past performance
Fee summary
Fees summary
Any adviser charge or commission payment (if applicable) together with the Initial Charge and Annual Management Charges will be deducted at the outset from the investment into the Fund. Please refer to the Information Memorandum for details of Charges.
Please note that these upfront deductions will reduce the amount invested into investee companies and will affect the final value of the investment and the tax reliefs that the investor is able to claim.
News and insights
Risks
PAST PERFORMANCE
Past performance is no guide to future performance. We can make no guarantee of investment performance or the level of growth that will be generated by the Fund.
RISK TO CAPITAL
The Fund invests into the shares and securities of unquoted companies. Capital and the investment returns are not guaranteed, and investors may not receive back all the money they invest.
Investors should consider the Fund as a long-term investment. Investments in unquoted companies are likely to be more volatile and present a higher risk to capital than those on the Official List of the London Stock Exchange. The rules governing which companies qualify for EIS relief means that investments will need to be made into small, early stage and high-risk companies. Investors should not invest unless they have thought carefully about whether they can afford it, and whether it is right for them.
LIQUIDITY RISK
Investments made by the Fund are likely to be less liquid than for example, companies on the Official List of the London Stock Exchange. Consequently, whilst we will always attempt to redeem investments upon receipt of a withdrawal request, this will not always be possible. Specifically, investments in unquoted companies are not readily marketable and may take several years to realise, the timing of which cannot be predicted. The Fund is not designed to be held for the short-term. Investments into qualifying companies have to be held for at least three years to retain the EIS reliefs and may need to be held for much longer in order to realise their full potential value.
CURRENT LEGISLATION
Rates of tax, tax benefits and allowances are based on current legislation and HM Revenue & Customs (HMRC) practice and depend on personal circumstances. These may change from time to time and are not guaranteed.
EIS APPROVAL
We invest in companies with Advance EIS Assurance from HMRC at the time of investment but please be aware that there is no guarantee that such companies will remain EIS qualifying companies at all times thereafter, or that EIS tax reliefs will be available to investors. A failure of a qualifying company to meet the EIS requirements could result in the withdrawal of EIS tax benefits that have already been obtained and the requirement to repay any rebated tax. There is no guarantee as to the timing of the availability of the EIS3 certificates that are needed in order to claim EIS tax benefits. Investors obtaining the EIS tax benefits is subject to them making the appropriate filings with HMRC.
Documents
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The content above has been provided by Committed Capital Financial Services Limited who are authorised and regulated by the Financial Conduct Authority under firm registration number 192203.