Anglo Scientific EIS Fund

The Anglo Scientific EIS Fund, established in 2009, is a joint partnership between Innvotec and Anglo Scientific Limited, investing in the next generation of technology-focussed companies.

Highlights

  • Evergreen EIS fund investing in emerging, technology-focused businesses
  • Focus on disruptive, scientific innovations in areas of global importance, such as healthcare and defence
  • Maximum of eight and a minimum of four portfolio companies
  • Investors will typically know which companies they will hold
  • Exits targeted from year 4 onwards (not guaranteed)
  • Minimum investment £5,000

No-obligation reservation form

The manager

Anglo Scientific Limited commercialises scientific research. It is neither a venture capital fund nor a fund manager (that is where the partnership with Innvotec comes in), although members of the team invest meaningful amounts in the companies they form. It gets involved at the earliest stages of company development, typically co-founding a business together with lead scientists, academics and institutions, before building up the firm to pursue global market entry and growth. 

Innvotec is the investment manager. It has been investing in early stage technology companies for over 30 years, and has thus weathered a number of market cycles. 

The offer

Companies sought by the Anglo Scientific EIS fund will possess technology capable of delivering products that have the potential to be globally disruptive. Example industry sectors include: medical technology, microelectronics, security and communications.

The companies will be at one of the following stages:

  • At the latter stages of core technology development
  • Have developed and certified products and starting market entry
  • Have been recently formed with technology undergoing on-going development.

Mostly, they are at the latter stages of their core technology development and starting to adjust their focus towards deployment of the technology and commercial exploitation. This means they will have met and overcome many of the initial technical challenges and be starting to deploy and commercialise their technology. These early stages of commercial exploitation offer potential for significant capital appreciation – although there are no guarantees and capital is at risk.

As well as having world-class technology, the firm must have defensible intellectual property and potential to address a global market. 

Anglo Scientific team members are required to invest themselves and take an ongoing and active involvement in the management and development of the business. Indeed, Anglo Scientific makes its money through the capital appreciation of its founder ordinary shares in the portfolio companies. 

Investors in the Anglo Scientific EIS Fund should largely know at the outset which companies will receive their money and how it will be utilised, unlike many other EIS funds.

Risks

Investors must be aware they are investing in early stage businesses which take time to mature. Should this fail then the investment will likely retain little or no value. By definition this is a high-risk investment which could result in a total loss, as well as having the potential to deliver high returns. In a portfolio of five to ten companies, one might do very well (although there are no guarantees), several could fail and the others might just tick along. 

The usual risks with unquoted companies exist with this EIS offer. For instance, EIS investments are illiquid and capital is at risk. Investors should only invest money they cannot afford to lose. Tax benefits will depend on individual circumstances and tax rules can change. 

Fees and charges

A summary of the fees and charges is shown below. Please see the provider's documents for more details.

Full initial charge 0%
Wealth Club initial saving 0%
Net initial charge through Wealth Club 0%
Annual charge 1.5%
Performance fee 30%

More detail on the charges

Our view

This fund sits in high-risk but high-reward territory. We like way the charging structure of the fund aligns with investors’ interest, as does the requirement for Anglo Scientific’s team to invest in the portfolio companies personally. The team is very experienced: the partnership is a good match with Innvotec providing the investment angle and Anglo Scientific the hands-on company development. 

Wealth Club aims to highlight investments we believe have merit, but you should form your own view. You should decide based 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. 22 June 2018

The details

Type
Fund
Sector
Technology
Target return
Unspecified
Funds raised / sought
-
Minimum investment
£5,000
Deadline
Discretionary

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