Committed Capital Growth EIS Fund
The Committed Capital (“CC”) fund invests in technology-enabled EIS qualifying companies in opportunities such as FinTech, digital marketing, InsureTech, security, IoT (internet of things), SaaS (software-as-a-service) and EdTech.
- Target return 2-3x (net of fees and excluding tax relief)
- Expected exit timeline of just 3-5 years (not guaranteed)
- Between 8-12 portfolio companies
- Funds typically deployed within 12 months
- Minimum investment £15,000
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The fund is managed by Sapia Partners with CC acting as the appointed investment adviser.
To date, the fund has deployed £42.5 million into 15 companies (as at August 2019) and has had two profitable partial exits and most recently a whole exit that completed on 31 July 2019. Outside of this fund, CC has previous experience in facilitating exits from EIS investments. It has deployed £36.8 million across 18 EIS qualifying companies and has exited all of these, achieving 17 profitable exits with one failure. Past performance is not a guide to the future.
CC reviews approximately 400 business plans every year with approximately six to eight companies receiving backing from the fund.
CC looks for companies it feels are well-positioned within a fast-growing addressable market. It is looking for businesses that are post revenue (£1 million plus) and offer a product or service that is fully developed and has a sustainable technology-based competitive advantage.
CC was created with the belief that smaller companies need support as well as funding to thrive. Therefore it looks to take a hands-on approach rather than just provide a cash injection. It appoints a non-executive director and establishes a remuneration committee within the investee companies to help protect investors’ interests.
Support is provided by the Committed Capital Syndicate which comprises circa 160 entrepreneurs and angel investors. The Syndicate assists with the investment decision-making process; members invest their own money in the fund and also provide guidance to the portfolio companies.
An example of a investee company is Kortext which operates in the edtech sector and is the UK’s leading digital textbook and learning platform with over 200,000 titles from over 200 publishers. It has partnered with a number of high-profile UK universities.
Risks – important
This, like all investments available through Wealth Club, is only for experienced investors happy to make their own investment decisions without advice.
EIS investments 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.
This fund invests in early-stage businesses which are more likely to fail than larger ones, so you should expect a number of failures in the portfolio.
Charges and savings
A summary of the main charges and savings is shown below. Some of these will be payable by the investor, others by the investee companies. The investment may have additional charges and expenses: please see the provider documents, including the Key Information Document, for more details.
|Full initial charge||1.5%|
|Wealth Club initial saving||—|
|Net initial charge through Wealth Club||1.5%||Annual management charge||2%|
|Performance fee||20%||Investee company charges|
|Initial charge||3%||Annual management charge||—|
More detail on the charges
Read important documents and apply
Wealth Club aims to make it easier for experienced investors to find information on – and apply for – tax-efficient investments. You should base your investment decision on the provider's documents and ensure you have read and fully understand them before investing. This review is a marketing communication. It is not advice or a personal or research recommendation to buy the investment mentioned. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination.
- Target return
- Funds raised / sought
- £5.3 million / £30.0 million
- Minimum investment