Review: Parkwalk Opportunities EIS

Four of the world’s ten best universities are in the UK. As well as seats of learning, many of these top universities are innovation hubs. 

In the past, innovation was usually uncommercialised but universities are starting to wake up to the value they could potentially generate. 

Cambridge University has spun out 15 companies valued at more than $1 billion. Two are now worth more than $10 billion. This specialist area of university spinouts is the focus of the Parkwalk Opportunities EIS.

Ideally placed to spot rising stars

Parkwalk was founded by two experienced capital markets managers in 2009, when they discovered a compelling company in which they wished to invest, Xeros. The brainchild of a Leeds University professor, it has developed a “waterless” washing machine. Parkwalk invested in 2010 and Xeros listed on AIM in 2014.

That original investment created the blueprint for what Parkwalk has become.

It is the leading EIS investor specialising in backing the commercialisaton of technology or intellectual property developed at leading UK universities. 

Parkwalk has investments in companies spun out of twelve universities. In addition to the Opportunities EIS fund, it manages funds in conjunction with the tech-transfer departments of Cambridge, Oxford and Bristol Universities. This gives the team access to exclusive deals some other managers don’t see. 

Valuable links to institutional investors

In January 2017 Parkwalk was acquired by IP Group plc, a leading intellectual property commercialisation company listed on the London Stock Exchange. This strengthened its market position and gave it access to potentially valuable co-investment opportunities with IP Group as well as other large institutional investors.

Tracsis plc – Parkwalk Opportunities EIS FundA manager with an impressive track record to date

To date the manager has exited 19 companies, eight profitably. Successes include Tracsis, a firm that creates software for train operators.  It delivered close to 10x return in three years. Investors in the Parkwalk UK Tech Fund II received back substantially more than their original subscription into the fund on this exit alone. Please note, past performance is not a guide to the future. The performance figures below are for the fund manager across all of its funds, not for this fund specifically.

Source: Parkwalk Advisors. Valuations as of 1 Nov 2018, on all investments made across all funds per tax year. Total Return includes realised returns and unrealised returns. Performance figures exclude performance fees and tax relief. Returns calculated using Parkwalk's own valuations. Please note, data for the 2017/18 tax year is not yet available. Past performance is not a guide to the future.

Risks - important

This, like all investments available through Wealth Club, is only for experienced investors happy to make their own investment decisions without advice. 

VCTs are high-risk so should only form part of a balanced portfolio and you should not invest money you cannot afford to lose. They also tend to be illiquid and hard to sell and value. Before you invest, please carefully read the Risks and Commitments and the offer documents to ensure you fully understand the risks. 

Tax rules can change and benefits depend on circumstances.

VCTs can now only invest new money in growth capital deals. Management buyouts/replacement capital deals and investments in mature companies are no longer permitted. This results in considerably higher risks. 

What to consider next

Please visit the offer page using the link below to download the provider documents, read more (including risks and charges) and apply online.

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