Goldfinch EIS Fund
Update (14 March 2018): This offer is expected to reopen once it has reapplied for EIS Advance Assurance following Royal Assent to the Finance Bill.
The Goldfinch EIS Fund invests in companies marketing and distributing media content, providing sales advances to producers of film, TV and video games.
- Focuses on commercialisation of independent media productions
- Diversifed over a range of projects, each having presales, tax credits and sales estimates to help mitigate risk
- Fund is managed by Kin Capital, working with Goldfinch Entertainment
- Targeting a £1.20 return on £1 invested (not guaranteed)
- Fund aims to deploy in 2017/18 tax year
- Minimum investment £10,000
Goldfinch Entertainment Ltd (“Goldfinch”) is an advisory business to the film, TV and gaming industry. It was established in 2014 and has raised and helped deploy over £70m of funding to date into over 100 EIS and SEIS companies. It also advises the Goldfinch SEIS fund, which funds the production of film, TV and video game projects. The founder and MD, Kirsty Bell, is a Chartered Tax Adviser who has been involved in film finance since 1996 and is credited as executive producer on 27 completed film and TV projects, with a further 18 in progress according to IMDb.
The investment manager of the Goldfinch EIS Fund is Kin Capital Partners LLP, an independent fund manager based in London.
Watch a video interview with Kirsty Bell, MD of Goldfinch:
The Goldfinch EIS Fund will invest in at least one EIS-qualifying company that sells and distributes film, television and video games. These companies provide sales advances to the media producers in exchange for distribution rights. They then earn money from the sales of the media through broadcast, retail and licensing. Each investee company will be involved in typically between 8 and 10 different media titles.
To help mitigate risk, the companies Goldfinch chooses to invest in will normally only agree to act as distributor where a third party has provided independent sales estimates covering 2.5x the budgeted cost. The fund will only back projects relatively late in the production process. Commercial risk can also be mitigated by pre-sales revenue and obtaining tax credits.
The company or companies Goldfinch EIS fund will invest in are unquoted companies. Investors’ capital is at risk and the investments have very low liquidity. Further details of risks are outlined in the Investment Memorandum.
Investors should not invest money they cannot afford to lose. Tax rules can change and the value of tax benefits will depend on individual circumstances.
Specific risks to the media sector include being unable to secure commercially attractive projects, sales coming in below projections and productions not being completed or released.
Fees and deadlines
The fund has an initial charge of 5% before Wealth Club saving. There is an annual management fee of 2.25% which is charged for 4 years only; it is paid upfront and so will be deducted from an investor’s subscription. There is a performance fee of 20% on returns above £1.20 per £1 invested.
Investors’ subscriptions should be deployed this tax year; alternatively, you can choose to have them deployed in 2018/19.
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- Target return
- Funds raised / sought
- Minimum investment