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Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

What are the key risks?

1. You could lose all the money you invest

• If the business you invest in fails, you are likely to lose 100% of the money you invested. Most start-up businesses fail.

2. You are unlikely to be protected if something goes wrong

• Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker here.

• Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection here.

3. You won’t get your money back quickly

• Even if the business you invest in is successful, it may take several years to get your money back. You are unlikely to be able to sell your investment early.

• The most likely way to get your money back is if the business is bought by another business or lists its shares on an exchange such as the London Stock Exchange. These events are not common.

• If you are investing in a start-up business, you should not expect to get your money back through dividends. Start-up businesses rarely pay these.

4. Don’t put all your eggs in one basket

• Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.

• A good rule of thumb is not to invest more than 10% of your money in high-risk investments.

5. The value of your investment can be reduced

• The percentage of the business that you own will decrease if the business issues more shares. This could mean that the value of your investment reduces, depending on how much the business grows. Most start-up businesses issue multiple rounds of shares.

• These new shares could have additional rights that your shares don’t have, such as the right to receive a fixed dividend, which could further reduce your chances of getting a return on your investment.

If you are interested in learning more about how to protect yourself, visit the FCA’s website here.

Commercial property deal – could you qualify to receive all the details?

Annual tax-free repayments plus potential equity upside – not guaranteed

We have come across a potentially appealing commercial property deal. But we can only disclose full details if you can answer a few questions to demonstrate your investment experience and knowledge.

The deal – managed by a specialist asset manager – involves investing directly in a substantial purpose-built asset currently under a 25-year lease with a large national supermarket.

The investment aims to give experienced investors attractive annual cash distributions as well as a share of any profits after the property is sold. All capital repayments should be tax free, whilst any profits should be subject to capital gains tax. Please note, returns and timings are not guaranteed: capital is at risk; tax rules can change and benefits depend on circumstances.

Could this be of interest? Could you be eligible to receive more details? Please answer a few questions and complete the declaration to see if you qualify (technically, this is called an Elective Professional Client declaration).

Important: The information on this website is for experienced investors. It is not advice nor a research or personal recommendation to invest. If you’re unsure, please seek advice. Investments are for the long term. They are high risk and illiquid and can fall as well as rise in value, so you could get back less than you invest.

Check if you qualify »

Wealth Club aims to make it easier for experienced investors to find information on – and apply for – investments. You should base your investment decision on the offer documents and ensure you have read and fully understand them before investing. The information on this webpage is a marketing communication. It is not advice or a personal or research recommendation to buy any of the investments mentioned, nor does it include any opinion as to the present or future value or price of these investments. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination.

The details

Eligibility: Experienced investors only
Typical minimum investment: £25,000+

Last updated: 13 August 2020

Check if you qualify to see all the deal details

Answer questions on your investment knowledge and experience to see if you can qualify as an Elective Professional Client.

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