Guinness EIS

This latest tranche of investment for Guinness EIS seeks to invest in a diverse range of non-correlated businesses. 

Highlights

  • Latest tranche of investment from established EIS manager Guinness
  • Targeting a portfolio of diverse businesses
  • A minimum portfolio of five companies, not guaranteed
  • £1.25 per £1 invested target after 4-5 years (not guaranteed)
  • Evergreen offering with quarterly closes
  • Expects to give investors in the current tranche a portfolio of at least five investee companies in different sectors
  • Quarterly close for each tranche – next deadline Friday 27 September
  • 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

Guinness Asset Management is a specialist fund manager with assets under management of approximately £1.4 billion and approximately £147 million invested in EIS and estate planning assets. The Guinness EIS was launched in 2010. 

Eight key people, including Edward Guinness and Shane Gallwey, work in the Guinness EIS team, which manages this generalist EIS alongside the sustainable infrastructure IHT investments.

Prior to 2018, the EIS team focused on energy-generating and asset-backed investment opportunities. However, to comply with new EIS rules, future companies will be younger, riskier and growth orientated. Following this change, Guinness has invested £35.7 million into qualifying EIS companies, although none have exited so far. 

Watch an exclusive video interview with fund manager Shane Gallwey:

This video was recorded in October 2018.

The offer

The managers will consider investments in businesses which have: 

  1. Experienced management teams
  2. Good visibility on future growth
  3. Expanding working capital requirement
  4. Cumulative revenues of at least £1 million to demonstrate a certain level of commerciality

They must also have EIS advance assurance. Guinness will invest between £500,000 to £5 million per company.

Guinness tends to invest only in equity, avoiding businesses with high leverage as the manager wants to have claim over the cashflow of the business to help mitigate risk. Please remember: all investments can fall as well as rise in value, so you could get back less than you invest.

The management team has identified a range of businesses in the above areas. The current portfolio breakdown is shown below.


Source: Guinness Asset Management, as at January 2019.

Some of their latest investments include:

  • Alexa Chung: high-quality fashion brand launched by the international model, Alexa Chung. 
  • Great British Prawns: land-based breeding and supply of prawns
  • Gravity Fitness Limited: trampoline parks offering fitness classes, party venues and open jump sessions

Target return

£1.25 per £1 invested is the target return (which is not guaranteed). This is intended to be a four to five-year investment but timeframes are not guaranteed.

Exit strategy

As the companies chosen will all be very different, there is no predetermined exit strategy. Exits could potentially be achieved by way of trade sale, IPO, leveraged buyout or liquidation. Guinness have exited over twenty private and listed EIS-qualifying companies since 2016. However, past performance is no guarantee. 

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 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 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 & 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 3%
Wealth Club initial saving 0.5%
Net initial charge through Wealth Club 2.5%
Annual management charge
Administration charge
Performance fee 20%
Investee company charges
Arrangement fee 2%
Annual charge 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

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
Various
Target return
1.25x
Funds raised / sought
£40.0 million sought
Minimum investment
£20,000
Deadline
27 Sep 2019
Last updated: 15 July 2019

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