MMC EIS Hero

MMC Knowledge Intensive EIS Fund

This offer is closed

Want to know when this offer opens?

Register your interest

MMC Ventures has invested exclusively in technology for over 20 years. Over that time, it has built an enviable track record backing some of the UK’s fastest-growing private technology companies – from Gousto and Bloom & Wild to Interactive Investor and Copper.

The MMC Knowledge Intensive EIS Fund follows the same investment strategy and is managed by the same team as the MMC Ventures EIS Fund, targeting disruptive, high-growth, early-stage technology companies in areas such fintech, Artificial Intelligence, cloud and data infrastructure and data-driven health.

The managers believe the companies most likely to transform an industry will do so from the inside out: improving existing technology, rebuilding tech infrastructure and using data in fundamentally new ways. These are the businesses MMC aims to identify and help scale.

Since 2010, the MMC Ventures EIS fund has invested in 72 companies and achieved 18 full or partial exits, as well as 13 failures. It has invested £348.3 million, realising £163.0 million, with a remaining value of £469.9 million (September 2024). Past performance is not a guide to the future.

The ‘KI approved fund’ structure may offer tax-planning advantages. As the fund closes this tax year, investors should be able to obtain tax relief for 2024/25 and have the option to carry back to 2023/24 (tax rules can change and benefits depend on circumstances).

  • Approved KI EIS fund
  • Target return of 2-3x over five to eight years, not guaranteed
  • Targets a portfolio of around 10 companies, deploying investors funds over 24 months
  • £25,000 minimum investment

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: you could lose all the money you invest.

The manager

MMC Ventures (“MMC”) was founded in 2000 by Bruce Macfarlane, current managing partner, Alan Morgan, current chairman and Allan Cockell, partner – hence the initials MMC.

MMC has always exclusively targeted high-growth technology businesses. It started as a syndicate for high net worth individuals and launched the EIS fund in 2005 and Knowledge Intensive Fund in 2021. 

Today MMC has around $1 billion under management across its EIS funds, institutional limited partnership funds, and its syndicate of business angels (December 2023).

The team of 18 includes investment professionals and two of the three founding partners. They come from a range of backgrounds, from experienced venture capital investors to younger talent from consultancies, investment banks, law firms and asset managers. 

The team seeks to develop a deep understanding of the technologies in its areas of focus, such as quantum computing, blockchain and artificial intelligence to help identify the opportunities with the highest potential. The investment team works closely with portfolio companies and several former MMC team members joining portfolio companies and now serving as advisers to the MMC investment team. 

The MMC team commits to investing in every EIS fund deal and has invested around £15 million to date. This helps align the management team’s interests with those of investors.

Mainspring Nominees Limited acts as custodian and nominee.

Investment strategy

MMC invests across a variety of subsectors within technology, including fintech, AI, cloud and data infrastructure and data-driven health.

It operates a two-stage investment committee process when assessing new investments. The first is before terms are offered, to shape the due diligence focus. The second is to review the due diligence findings before investments complete.

As well as providing capital, MMC draws on its own experience and network to assist companies in areas including international expansion, senior hiring, access to potential clients, corporate governance, fundraising, bank finance and exit. Its research team works closely with investee companies to help them grow.

MMC targets an initial investment of £1–10 million in each investee company. MMC can support companies with up to £12 million per company of funding under EIS, or up to £20 million if it is a ‘Knowledge Intensive Company’.

The fund aims to return 2-3x the invested amount over the investment period, with realisations expected from year five – not guaranteed. 

Portfolio

Investors into the MMC Knowledge Intensive EIS Fund can expect a portfolio of around 10 companies (not guaranteed) comprising new deals and more mature investments. MMC aims to deploy funds over 24 months, not guaranteed.

The companies outlined below are previous investments made by the MMC Ventures EIS Fund. The Knowledge Intensive Fund is expected to follow the same investment strategy, however, please note these companies are unlikely to form part of a new investor’s portfolio. They are outlined to give examples of the types of companies an investor might expect.

Example of previous failure

Mastered

Investing in small companies is high risk and inevitably not all will work out as planned. Mastered is one example of a failure in MMC’s portfolio. 

The business delivered online and in-person tuition to the creative industry with feedback, coaching and content from prominent figures including Val Garland and Sam McKnight who have worked with celebrities including Princess Diana, Kate Moss and Lady Gaga. 

The MMC EIS Fund first invested in early 2016. The company grew well and MMC invested again in 2017. However, in 2017 and 2018, the business took longer than hoped to achieve enrolment targets and sign corporate sponsorship deals and needed further investment.

Ultimately, conversations with potential new investors did not result in an offer of funding or acquisition, and MMC decided not to commit further money. The board put the company into administration ensuring any customers already enrolled could finish their courses.

Performance

The first iteration of the MMC Knowledge Intensive EIS Fund closed in 2021 and is yet to have an exit. However, the management team, shared with the MMC Ventures EIS Fund, has a strong track record of delivering returns to investors.

Since 2010, the MMC Ventures EIS Fund has invested in 72 companies and achieved 18 full or partial exits, as well as 13 failures. It has invested £348.3 million, realised £163.0 million, with a remaining value of £469.9 million (September 2024). Past performance is not a guide to the future.

The chart below shows the average performance of the total subscribed into the funds each in each of the last 10 full tax years (or from when the current strategy was adopted if later). The chart is based on the latest valuations provided by the manager, expressed on a £100 invested basis. Please note, individual investor portfolios’ performance will deviate from the average.

Performance per £100 invested per tax year

Source: MMC Ventures, as at 30 September 2024. Past performance is not a guide to future performance. The chart shows realised returns (where share proceeds have been returned to investors as cash) and unrealised returns (where cash has not yet been returned and the value of the investments is based on the manager’s own valuation methodology). There is no ready market for unlisted shares. The figures shown are net of all fees and do not include any income tax relief or loss relief.

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 and should only form part of a balanced portfolio. As must be expected with early-stage investments, some or even all of the companies in the portfolio could fail: the fewer the companies included in the portfolio, the higher the risk of loss if things don’t go to plan. You should not invest money you cannot afford to lose.

There is no ready market for unlisted EIS shares: they are illiquid and hard to sell and value. There will need to be an exit for you to receive a realised return on your investment. Exits are likely to take considerably longer than the three-year minimum EIS holding period; equally, an exit within three years could impact tax relief.

To claim tax relief, for a knowledge intensive EIS fund you will need an EIS5 certificate. Certificates can be issued once the fund has invested 90% of its capital, which it is required to do within 24 months of the close. Tax reliefs depend on the portfolio companies maintaining their EIS-qualifying status. For capital gains tax deferral and inheritance tax relief the investment date is when the capital is invested in each company, not the fund close date. Remember, tax rules can change and benefits depend on circumstances.

Before you invest, please carefully read the Risks and Commitments and the offer documents to ensure you fully understand the risks.

Charges

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.

Investor charges
Initial charge 4%
Annual management charge 2.5%
Administration charge 0.15%
Dealing charge
Performance fee 20%
Investee company charges
Initial charge
Annual charges

The fees and charges above are stated exclusive of VAT, which applies in some cases, as determined by the manager. Please check the VAT position carefully in the provider documents. Any fees and charges payable by the investee companies or the underlying businesses do not directly come out of your investment. However, they will effectively reduce the returns generated by investee companies and therefore impact your investment.

More detail on the charges

When you invest through us, Wealth Club will receive initial commission (2.5%) and trail commission (0%). These are paid by the provider – there is no additional cost to you.

Any charges deducted from the subscription will reduce the amount invested and on which tax relief can be claimed.

Any investee company charges are levied on the underlying companies. They will not affect the amount of tax relief available but can still impact investor returns.

The performance fee applies on returns in excess of £1 per £1 invested. Whilst not uncommon, this is a low hurdle. Performance fees are calculated on a portfolio basis.

Other charges apply. Please see the provider’s documents, including the Key Information Document, for more details.

Our view

We believe MMC Ventures is a credible and experienced manager. It has built an impressive track record backing some of the UK’s fastest-growing technology start-ups and delivering realised returns to investors.

The fund has announced a series of high-profile exits in recent years with eight successful exits since 2021, realising over £160 million of investments. Several portfolio companies have also raised funds at a significant valuation uplift to MMC’s original investment.

Overall, we believe MMC’s KI-approved EIS fund is worthy of consideration for investors looking to invest in technology via an EIS fund. Compared with the MMC Ventures EIS Fund, the KI Fund has the added advantage of greater clarity on the timing of income tax relief and a single tax certificate.

This financial promotion has been communicated and approved by Wealth Club Ltd on 30 January 2025

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.

opens in new window