Guinness EIS

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Guinness Asset Management has been based in Westminster since its inception in 2003, and has established itself as a leading EIS Investor. They have invested over £180 million of EIS funds into more than 150 companies across the Guinness EIS and Guinness AIM EIS portfolios.

  • £20,000
    Min. Investment
  • Generalist
    Sector
  • EIS
    Fund Type
  • Evergreen
    Closing Date

Within the universe of EIS-qualifying investments, our Guinness EIS Service is focused on identifying and investing in growth companies that require Scale-up capital. The value of these businesses is often underpinned by experienced management teams, good visibility on future revenue growth and expanding capital requirements. We target a portfolio of at least six companies for investors, with portfolios for the last four tranches containing between six and twelve investments.

We are generalist investors and have invested into a wide range of sectors including technology, manufacturing, retailing, healthcare, leisure and food & drink.

Highlights

  • Quarterly Tranche Closures.
  • Targeting full investment within the same tax year as a subscription is received.
  • Target between 6 and 12 investments per client portfolio.
  • Generalists investors providing scale‐up capital into companies with a proven technology, service or product.

Investment strategy

A generalist approach providing balanced and diversified portfolios to our investors, when analysing potential investee companies, we focus on companies with experienced and competent management teams and a strong understanding of their market, a competitive position, and a track record of building and selling companies.

Maturing companies and businesses with clearly defined growth paths. We favour businesses with a proven technology, service or product. Investee companies in 2018/19 had average revenues of £2.3m and this provides a good visibility of growth.

We look at companies that have strong competitive positioning, underpinned by a realistic business plan. Investments structured to maximise returns and allow Guinness to protect our investors' interest.

STEP 1 Originatation

Pipeline of investment opportunities from Guinness's network of adviser and introducers. Initial

screening before progressing.

STEP 2 Due Diligence

Meet management, site visit, detailed legals reviews, 3rd party Due Diligence as appropriate, EIS staus reviewed.

STEP 3 Transaction

Managed internally with third party support from lawyers and accountants. Investment committee approval required.

STEP 4 Monitoring

Regular management reports and financial statements. Board seat on investee company where appropriate.

STEP 5 Exit

Exit opportunities actively monitored through lifetime of investment. Investment committee approval required.

Key team

Shane Gallwey, CFA - Fund manager

Shane Gallwey joined Guinness Asset Management in 2010 and set up the Guinness EIS Team.

Shane has, over the last twenty years, launched, advised, invested in and sold a large number of EIS businesses. He was previously a director of Northland Capital Partners, where his focus was on advising growth companies on capital structuring, with an emphasis on tax-efficient funding through EIS and VCT for a range of small to mid-size technology and alternative energy companies. From 2002 to 2006 Shane was based in Gibraltar with Trafalgar Financial Futures. Prior to that he spent six years at HSBC Investment Bank.

Shane holds an MA from the University of Edinburgh, and is a CFA Charterholder.

Tyrone Long - Business Development Manager

Tyrone works as a Business Development professional with over 15 years of experience. He began his career at HSBC Asset Management before taking up roles at MitonOptimal, AXA Wealth and Cavendish Asset Management. Tyrone joined Guinness in 2018 to distribute the EIS and BR solutions offered by the group.

Will Clark

Will is responsible for distributing the Guinness suite of EIS and Business Relief qualifying investments. An experienced Business Development professional Will has previously worked at Mariana Capital, The Ingenious Group, Barclays Wealth and UBS Wealth. He holds a B.A (Hons) degree in Philosophy and Economics from the University of Southampton.

Exit strategy

You should expect to invest for at least four to five years. The EIS holding period is a minimum of three years. We target an investment horizon of four to five years between purchase of shares and exit.

You will need to be prepared to have your investment tied up for this length of time before investing.

We view a successful exit as the most important part of the investment process.

We look at the options for exit even before we commit to making an investment, as well as right through the investment holding period. The Guinness team have successfully exited more than 40 private and AIM-listed EIS-qualifying investee companies since 2016, including six private businesses exited through trade sales.

Routes to exit include:

 Sale to a trade or financial buyer

 Sale to management

 Via a listing on a public market such as AIM

 Leveraged return of capital to investors

Fee summary

Direct Investors only

A Direct Investor Fee of 3% of the Subscription amount is payable to Guinness for non-advised subscriptions.

Initial Fee

An Initial Fee of 2% of the Subscription amount is charged to EIS Investee Companies at the time of investment.

Management Fee

A Management Fee of 2% per annum of the amount Subscribed is charged to EIS Companies.

Dealing and Administration Fees

A Dealing Fee of 0.2% of the amount invested in an Investee Company is charged by Guinness to Investee Companies. This is used to cover the dealing costs and ancillary fees charged by the Custodian.

An Administration Fee of 0.2% per annum of the amount invested in an Investee Company is charged by Guinness to Investee Companies. This is used to cover the annual custodian and nominee fees, as well as any other bank and administration charges charged by the Custodian.

Performance Fee

No Performance Fee is payable until investors have received back cash proceeds equivalent to the amount invested in Investee Companies. Thereafter a performance fee is payable at a rate of 20% of the excess returns.

Fees

Direct Investor Fee: 3% - Direct Investors only

Initial Fee*: 2%

Management Fee*: 2%

Dealing Fee*: 0.2%

Administration Fee*: 0.2% per annum

Performance Fee: 20%

* Charged to Investee Companies

For full details please refer to the Information Memorandum/Prospectus.

Risks

Investment Risk

The Investment Manager may be unable to make sufficient investments in suitable Investee Companies. If sufficient investments are not made, the returns achieved by the Service could be materially impacted.

Exit

The Investment Manager will rely on achieving an exit for the Investments in order to generate a return for Investors. Minority holdings in unquoted Investments may be difficult to protect and difficult to realise. The timing of realisations of Investments by the Service cannot therefore be predicted. There is no guarantee that exits will be available to generate returns anticipated by the Investment Manager.

Performance

Past performance of the Investment Manager is no guarantee of futureperformance. The value of shares in any Investee Company may go down as well as up and Investors may not get back the full amount invested. Investors should not consider subscribing unless they can afford a total loss of their Subscription.

Liquidity

It may be difficult to sell or realise the Investment or obtain reliable information about their value. Investors should not consider investing funds which are, or may be, required during the life of the Service.

Diversification

The Investment Manager intends to invest in at least six companies. It is expected that there will be very limited diversification, which will concentrate risk on a small number of companies.

Tax

Investors should be aware that tax rates and available reliefs can change or be withdrawn.

Conflicts of Interest

The Service may invest alongside third parties. Such third parties may at any time have economic interests or goals which differ from those of the Investment Manager.

Documents

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

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The content above has been provided by Guinness Asset Management Ltd who are authorised and regulated by the Financial Conduct Authority under firm registration number 223077.