Station12 EIS/SEIS Fund

Launched in 2019, the Station12 EIS/SEIS Fund offers investors a hybrid portfolio of companies operating within the sport, entertainment, and knowledge sectors.

The fund is managed by Station12 Asset Management Limited, which currently has £1.35 million in assets under management. While Station12 has only recently entered the EIS/SEIS market, its team has been an active venture investor for a number of years, particularly within the media and entertainment industries.

Investments will be made into companies founded by Station12 as well as into existing businesses in need of early-stage capital. So far, Station12 has launched one company of its own and invested in four others.

Highlights

  • Sport, entertainment and knowledge focus
  • SEIS, EIS or a blend of both
  • Target return 2.5x (before performance fee) within 4 to 6 years (not guaranteed)
  • Target 4-6 companies (not guaranteed) with advance assurance
  • Investments should be deployed within 12 months from the fund closing date
  • Minimum investment £10,000, you can apply online 

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

Station 12 Asset Management Limited (“Station12”) was founded by Patrick Bradley in 2014. Mr Bradley originally trained as a lawyer before transitioning into the media sector with senior operational roles at PolyGram and Universal Studios. In 2000, Patrick joined Ingenious Ventures and later became its CEO. Whilst at Ingenious Ventures, he developed a portfolio of high-profile investments, including 19 Management (the production company behind American Idol), video games producer Lionhead, and Digital Rights Group (the distributor for shows such as The Inbetweeners and Doc Martin).  

Patrick is supported by an investment team of eight and a seasoned advisory board of six: Lord Chadlington, Dame Heather Rabbatts, Jeremy Moczarski, Guy Bowles, Joe Calabrese and Shirish Patel. They bring additional expertise in law, accounting, and early-stage investing.

Station12 currently has £1.35 million in assets under management.

Watch a video interview with Patrick Bradley:

Investment strategy

The current fund offers a hybrid EIS/SEIS structure and aims to provide investors with a diverse portfolio of companies within the sport, entertainment, and knowledge sectors. Station12 selected these sectors to complement existing experience within the team where it believes in can offer ‘operational value’ to investee companies.

Companies within the portfolio fall into two categories: venture capital (externally sourced companies) and venture building (companies founded by Station12). In the latter case, Station12 will establish its own companies if it identifies a compelling market opportunity.

Station12 will be responsible for building and developing the business plan and also sourcing a management team. It is expected that these startup companies will initially only be included within the SEIS portfolio.

Outside of its venture building portfolio, Station12 targets businesses with significant competitive advantages and with clear strategies to reach profitability, ideally within a 1 to 3-year period. Management teams must be able to demonstrate proof of concept and, importantly, should not require significant funding rounds to achieve growth.

Target return

The fund aims to return £2.50 (before performance fees) for every £1 invested before tax reliefs within four to six years, not guaranteed.

Exit strategy

The investment team believes it is important to allow companies to grow to full market value before exiting. The fund aims to create exits within a 3 to 6-year timeframe but will seek an exit when it considers it appropriate, not because of an artificial timetable.

Alongside the usual exit routes, Station12 will make use of its corporate finance arm to assist businesses when they are ready to sell.

Portfolio

Since launching its EIS/SEIS fund, Station 12 has invested £1.35 million into five companies. It is expected that investors will receive between 4-6 companies in their portfolios, not guaranteed.

The companies outlined below are historic investments made by the fund and give a flavour of the types of companies a new investor might expect. EIS funds tend to be managed on a discretionary basis so each individual portfolio is likely to be different.

Parade Media – Station12 EIS SEIS funds-min.jpgParade Media Limited 

Parade is a media and entertainment business, specialising in the production and distribution of premium lifestyle and factual content.

The company was founded by Matthew Ashcroft in 2015. Ashcroft has been working in TV distribution since the late 90s with firms such as ABC International, Viacom, and Shine Australia. Having been involved with the ‘supercharged’ version of MasterChef Australia, Ashcroft used his links within the culinary networks to begin building Parade’s catalogue of shows.

Today, Parade has more than 1,400 hours of programming (including 50 plus hours of original content) which it distributes to over 150 markets internationally. In addition to distribution, Parade has continued to diversify its revenue streams and now also offers project development, co-production, analytics, and financing services.

Station12 invested just under £0.5 million into the business alongside co-investor S4C Digital Media (a Welsh broadcasting service). As a result, Parade was able to invest in new programming, increasing its hours of content four-fold, in addition to making several key appointments.

WhyBuy – Station12 EIS SEIS funds-min.jpgWhyBuy Ltd

WhyBuy has developed a rental app for household goods. WhyBuy believes many consumers are stuck with items they no longer use or rarely need which take up valuable storage space.   

Instead, WhyBuy allows consumers to rent high-quality, top-of-the-range brands for a fraction of the ownership cost. This can be everything from a power drill or hot tub down to an £18 fondue set. The company believes this model is particularly suited to the expansion of the ‘sharing economy’ which is projected to grow to more than $300 billion by 2025.

WhyBuy launched its app and became fully operational in June 2020 in London. In its first full month, the app was downloaded 4,800 times, with an average order value of £56.

To date Station12 has invested just under £0.2 million through SEIS and EIS. More recently, the company completed a £0.3 million crowdfunding round. The funding will be used to expand the model to more UK cities and establish partnerships with large retailers.

Performance

The performance chart below shows the track record of the Station12 EIS/SEIS fund. As the fund was launched in 2019, the track record remains limited.

The chart below shows the average performance of the total subscribed into the fund each tax year, based on valuations as at 31 October 2020, expressed on a £100 invested basis. Please note, individual investor portfolios’ performance will deviate from the average.

Source: Station12, as at 31 October 2020. Figures are net of all fees. Past performance is no guide to future performance. These figures do not include any realised returns which would be available through loss relief. In the above examples, initial tax relief could also apply. So, for the tax year 2018/19, the total return including initial tax relief would be £147.71, remember tax rules can change and tax benefits depend on circumstances. The fund launched in 2018.

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/SEIS 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 EIS/SEIS 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, or even be prepared for all companies to fail.

Exits could take considerably longer than the minimum holding period.

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 2%
Wealth Club initial saving
Net initial charge through Wealth Club 2%
Annual management charge
Administration charge
Performance fee 20%
Investee company charges
Initial charge
Annual charges 2%
All fees and charges are stated exclusive of VAT, which may be applicable in some cases. 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

Timing of the offer

The fund anticipates taking up to 12 months to fully deploy investor capital following the closing dates. However, this is not guaranteed and it may take longer.

For applications received by 26 Mar 2021, Station12 intends to fully deploy investors capital by the end of the tax year,  not guaranteed.

Our view

This is a relatively new fund that is still in the process of developing its portfolio and building a track record. The Station12 team includes experienced investors, particularly Patrick Bradley, with significant sector knowledge in the media and entertainment industries. To maximise its ability to add value, Station12 had identified three key sectors that it believes have the strongest growth opportunities and also complement the existing skills within the team.

As the fund offers a hybrid structure, investors could receive a blend of companies at different maturity stages, including the potential for start-ups founded through Station12’s venture building activities. However, these are very early-stage companies and there are considerable risks.

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
Media
Target return
2.5x
Funds raised / sought
-
Minimum investment
£10,000
Deadline
26 Mar 2021 for 2020/21 allotment
Last updated: 19 January 2021

News about EIS Investments. Read all