SBS Later Stage EIS Fund

The SBS Later Stage fund looks to invest in EIS qualifying companies that already have a developed customer base and revenue.

Highlights

  • Target return 3.7x (net of fees and excluding tax relief – returns not guaranteed)
  • Expected exit timeline of 8 years (not guaranteed)
  • Target of up to 8 portfolio companies (not guaranteed)
  • Subscription should be deployed within 12 months (not guaranteed)
  • Minimum investment £25,000

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.

Read important documents and apply

The manager

While The SideBySide Partnership (SBS) is new to the EIS market, the SBS managing director, John Bailye, has experience in investing and developing early-stage companies. He co-founded the New Jersey Technology Council which now has approximately 1,500 entrepreneur members.

Members of The SideBySide Partnership will potentially look to co-invest in up to 10% of the fund.

The offer

The fund will look to take a hands-on approach with its portfolio. By providing active support and mentoring, SBS hopes to guide management teams around common pitfalls. SBS will help investee companies produce a detailed one-year business plan and then spend at least two days a month mentoring each management team.

SBS plans to evaluate approximately 600 opportunities annually. However, in order to enable the team to provide close support to the investee companies, the fund will only hold a maximum of eight portfolio companies at any point. Therefore, after the initial portfolio has been put together, it will only invest in a new company once an exit has been achieved.

The fund will focus on businesses whose products or services have enhanced an existing market or created a new one through the application of technology. It will invest across a range of sectors such as FinTech, MedTech and SportTech.

Risks – important

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

This is the first iteration of this fund and the SBS Partnership are new to investing within an EIS framework.

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.

Fees and charges

A summary of the main charges and savings is shown below. Some of these will be payable by the investor, whilst 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
Full initial charge
Wealth Club initial saving
Net initial charge through Wealth Club
Annual management charge
Administration charge
Performance fee 20%
EIS company charges
Initial charge 3%
Annual management charge
Annual administration charge 2%
Dealing fee 0.5%
Monitoring fee
Performance fee
All fees and charges are stated exclusive of VAT, which may be applicable in some cases. Any fees and charges payable by the EIS 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

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.

The details

Type
Fund
Sector
Technology
Target return
3.7x
Funds raised / sought
£20.0 million sought
Minimum investment
£25,000
Deadline
Discretionary
Last updated: 13 May 2019

News about EIS Investments. Read all