Blackfinch Media Portfolio

The Blackfinch Media EIS will invest across two sectors: media publishing and television distribution. 

Highlights

  • Media portfolio with two main themes: music publishing and TV distribution
  • Target return of £1.05 to £1.20 per £1 gross invested (not guaranteed)
  • Intellectual property and contracted revenue provide downside protection
  • Minimum investment £25,000

The offer

Blackfinch has been in existence for over 20 years. Its offers include EIS, SEIS and an IHT service. Within the management team are renewable energy experts, property experts and – importantly for this EIS – music and media specialists. Terry Back is the asset specialist in this area.

The media portfolio has two main themes: music publishing and TV distribution.

The music publishing companies are responsible for creating, protecting, administering and monetising rights in musical compositions on behalf of musicians, songwriters and composers. Music publishing royalties are the revenues due to the creator of that underlying intellectual property and are generated from a number of sources.

The television distribution companies sell the broadcast rights for television programmes on behalf of producers. The companies acquire the distribution rights for those television programmes by advancing money to the television producer which is recovered in first position, along with sales commission and expenses, from the sales of the programme to international broadcasters who license those rights.

Risks

These are investments in unquoted companies which are illiquid and capital is at risk. Investors should only invest money they can afford to lose. 

Tax rules can change. EIS schemes have come under Treasury review recently. A change to EIS tax rules could make this investment less attractive. The value of tax relief will depend on the circumstances of the individual investor and tax rules could change in future.

This is the first EIS fund of this kind Blackfinch has launched and that itself brings risks. Please see the providers documents for more details on risks. 

Fees

Blackfinch charges its fees to portfolio companies, helping preserve full EIS tax benefits. There is an upfront portfolio establishment fee of 2% and an annual charge of 2%. The performance fee is 25% of all returns above £1.05 per £1 invested. Blackfinch may charge monitoring fees to the underlying companies. Please see the provider’s documents for more details on fees.

Key Information Document: Important Notice to Investors

Before you apply you should read and understand the important documents. Please note, the Key Information Document is not currently available for this investment. This is a new document we are required to provide to retail investors before they invest.


If you wish to apply now, please read the other important documents and ensure you are comfortable with the risks of investing. Then simply download, sign and return the declaration below alongside your application form and we will send you the document as soon as it is available. 

Key Information Document Declaration

Our view

Rather than traditional asset backing such as freehold property, this EIS has intellectual property rights as backing. Though not as tangible as bricks and mortar, there is an accessible second-hand market for Blackfinch to tap into, which could help it preserve capital, if the investments don’t go as planned, although there are no guarantees.


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. 08.12.2017

 

The details

Type
Fund
Sector
Media
Target return
£1.05 to £1.20
Funds raised / sought
-
Minimum investment
£25,000
Deadline
Discretionary

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