Committed Capital Growth EIS

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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.

  • £15,000
    Min. Investment
  • Technology
    Sector
  • EIS
    Fund Type
  • Evergreen
    Closing Date

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.

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.

Track Record - Since 2001 we have achieved an average 2.7 x ROI (excluding any tax reliefs) with an average holding period of 4 years. We have invested in 33 EIS qualifying investee companies, and made 21 exits and 1 partial exit. Of those 22 exits, 21 have been profitable and just 1 has made a partial loss.

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 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 – 22 Exits, with 21 profitable exits and just 1 partial loss. Since 2001 the team have achieved an average 2.7 x ROI (excluding any tax reliefs) with an average holding period of 4 years. We have invested in 33 EIS qualifying investee companies, and made 21 exits and 1 partial exits of which 21 have been profitable and just 1 has made a partial loss.
  • 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 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 2001 we have achieved an average 2.7 x ROI (excluding any tax reliefs) with an average holding period of 4 years.  We have invested in 33 EIS qualifying investee companies, and made 21 exits and 1 partial exit.  Of those 22 exits, 21 have been profitable and just 1 has made a partial loss.

Investment strategy

We are hands on investors and work with busienss 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.


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.


Sunny Nagi - Investment Manager

Sunny is an Investment Manager and has over five years of corporate finance and transaction advisory experience in both mid market and cross-border deals.  He previously worked at Mazars M&A, where he advised on M&A and debt advisory transactions across a variety of sectors including Technology, Aerospace and Business Services. Prior to the M&A team, Sunny worked in Financial DD at Mazars in various sectors including Healthcare, Education, Retail and Industrials.


Before joining Mazars, Sunny was a proprietary trader in the equity, fixed income and energy markets and has also worked at leading financial institutions such as BlackRock, Morgan Stanley and PwC. Sunny completed his ACA chartered accountancy exams with the ICAEW whilst at Mazars and also holds a BSc degree in Investment and Financial Risk Management from Cass Business School.


Else Thomson - Finance Director

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.

Glen Stewart - Head of Capital Raising

Glen joined Committed Capital in 2015 and has 14 years’ experience raising capital for businesses in partnership with financial advisers, solicitors and accountants utilising tax efficient investment wrappers such as Enterprise Investment Schemes and Venture Capital Trusts.


During this time, he has raised capital for a number of diverse businesses and asset classes including multimedia, property, renewable energy and AIM listed companies ranging from start-ups to well established and

profitable companies.


Prior to this, Glen spent the previous ten years at Coopers & Lybrand qualifying as a tax adviser, PwC and Deloitte specialising in High Net Worth, Expatriate tax and cross border advice before co-founding a successful accountancy and tax consultancy business.

Judy Welch - Investment Director

Judy has worked in Financial Services for over 25 years and held senior positions at leading institutions including Deloitte & Touche, BNP Paribas and Chase Manhattan.


Judy was involved in the original drafting of the legislation for R&D tax credits and has further expertise in due diligence, structured finance, other tax and trading.

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.

Fee summary

Initial Charge


There is a charge of 1.5% +VAT to cover set up and administrative costs, calculated on the investment into the Fund less the charge referred to above.


The adviser charge or commission payment together with the initial charge will be deducted at the outset from the investment into the Fund. This net amount will be considered the Managed Amount for the calculation of annual management fees as set out below. 


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.


Annual Management Charge


There is an annual management charge (“AMC”) of 2% +VAT applied to the Managed Amount, referred to above.  


Please note that an amount equivalent to the first 3 years’ annual management charges will be calculated at the outset and be held back in cash in the clients account and will reduce the amount invested into investee companies. This will affect the final value of the clients’ investment and the tax reliefs they are able to claim.


In years 4 and 5, the Managed Amount will be reduced by any investment returns (at cost) made to the client and the 2% charge will be accrued until returns allow the charge to be paid.


To the extent that the client has funds that remain invested after 5 years, no annual management charge will apply.


Performance Fee


There is a performance fee payable equivalent to 20% of the profits returned in excess of the gross amount originally invested by the client into the Service (excluding all tax benefits), plus VAT where applicable (the “Gross Investment Amount”).  Once the clients Gross Investment Amount has been repaid to them, the performance fee will apply to all consequent investee company exit proceeds.


Committed Capital retains the right to charge arrangement, monitoring and non-executive fees to investee companies in which the Fund invests. The costs of the deals that do not proceed to completion will be borne by Committed Capital.


Risks

Prospective Investors should consider carefully all the information in the Information Memorandum including the risks section (although this list is not exhaustive).


In addition, there may be additional risks which are currently not apparent or not considered material by the Investment Manager which may become apparent later or impact upon the Fund.


An investment in the Fund is suitable only for investors who are capable of evaluating the risks and merits of this type of investment and who have sufficient resources to bear any loss which may result from such an investment.


We do not give investment or tax advice, nor do we give personal recommendations with regard to your portfolio or decision to invest. Any person considering an investment in the Committed Capital Growth EIS should consider carefully the Information Memorandum as a whole and their personal circumstances and are advised to take advice from an independent professional adviser qualified to advise in relation to investments of this type. Any person in any doubt or who feels he or she does not understand any part of the Information Memorandum should not invest in the Committed Capital Growth EIS.


Performance Risk – 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.  We recommend you review your investment objectives regularly and update us if you need to make any changes. However, there is no guarantee that our investments will meet your investment objectives. Force majeure events may delay or prevent the Fund from fulfilling its obligations.


Risk to Capital - The rules governing which companies qualify for EIS relief means the Fund will need to make investments into small, unquoted and higher risk companies.  Investments into unquoted companies are likely to be more volatile and present a higher risk to your capital than those on the Official List of the London Stock Exchange. Your capital and the investment return are not guaranteed, and you may not receive back all the money you invest. You should not invest unless you have thought carefully about whether you can afford it, and whether it is right for you. You should consider the Fund as a high risk and long-term investment.


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 your investment 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 must 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.


Other Risks Associated with EIS Qualifying Companies - EIS Qualifying Companies are generally considered to be high risk investments. They depend on the skills of a small group of key executives, the loss of which may be particularly detrimental to those companies. Investee Companies may need to borrow funds from third parties. This exposes the Investee Company to additional risk and means that shareholders will rank as creditors behind lenders in an insolvency situation.


Wider Economic Risk - Valuations will be provided to Investors. No warranty is given that any such valuation is capable of being attained on a disposal, flotation or other realisation and is based on certain assumptions, which may or may not be realised, and valuation rules and guidelines that may be more or less suitable for certain companies.  An investee company may be (i) unable to borrow on acceptable terms or at all, or (ii) may have existing or promised funding withdrawn unexpectedly.  Should an Investee Company not perform as expected (or even if the Investee Company does perform as expected), it may require a further equity investment. In such circumstances, the Committed Capital Growth EIS may be faced with a choice of making a further investment in that company (increasing its exposure and potentially its percentage holding) or having its stake significantly diluted.


Current Legislation - rates of tax, tax benefits and allowances described in the information memorandum 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.  Committed Capital does not provide tax advice and potential investors are recommended to seek specialist independent tax and financial advice before investing.  The Fund has been designed with UK resident taxpayers in mind.


EIS Approval - We will invest in companies which we reasonably believe to be EIS qualifying companies 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. Your obtaining the EIS tax benefits is subject to you making the appropriate filings with HM Revenue & Customs. Please note, you will need to hold the investment for at least three years to retain the benefit from the EIS tax reliefs.


Forward Looking Statements – The information memorandum includes statements that are (or may be deemed to be) “forward looking statements“, which can be identified by the use of forward-looking terminology including the terms “believes”, “continues”, “expects”, “intends”, “may”, “will”, “would”, “should” or, in each case, their negative or other variations or comparable terminology. Forward-looking statements contained in the document, based on past trends or activities, should not be taken as a representation that such trends or activities will continue in the future.  It should further be noted, that where tax reliefs are available, they are only available on the actual amounts invested in the investee companies, and therefore no tax relief is available for charges.


Documents

Only registered investors can access the documents. Receive access by registering for an account.


The content above has been provided by Committed Capital Limited, an Appointed Representative of Sapia Partners LLP who are authorised and regulated by the Financial Conduct Authority under firm registration number 550103.