Imbiba Leisure EIS

The Imbiba Leisure EIS invests across the leisure and hospitality sector in Central London. Imbiba, led by serial leisure entrepreneur John Connell, is a venture capital business specialising in bars and restaurants. The team has extensive experience developing EIS businesses in the pub, bar and restaurant sector. This latest iteration of the fund is looking to raise £10 million.

Highlights

  • Target returns of 2.5x, not guaranteed (after 5 years and including income tax relief)
  • Creating and developing bars and restaurants with a focus on Central London
  • Leasehold site with long leases
  • Experienced team with good track-record
  • £10,000 minimum investment

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 offer

Imbiba, a specialist bar and restaurant operator with a focus on London, has been running for over 18 years. Fuelled by a young, affluent working population and high-spending tourists, the London bar and restaurant market continues to grow: it is this trend upon which Imbiba hopes to capitalise.

It seeks to deliver capital growth through improving the trading and profitability of the investee companies. That involves refurbishment and development, improved operations and the creation of a scalable business model. 

Imbiba has a “buy, build and exit” philosophy. It plans to roll out a concept over a number of sites, prove the concept works and then sell it. The expected exit route is a trade sale to larger trade buyers or private equity investors after four to five years, not guaranteed.

Imbiba prides itself on being able to match the right location with the right concept. To do so, the team has divided London into a number of ‘villages.’ Each village has its own personality. Camden, for instance, is alternative whilst Chelsea is traditional. The City is for business and the West End is for those who ‘dress down.’ The operating concept or brand of the bar or restaurant must be in keeping with the village in which it is located.

Imbiba can be credited with the highly successful Drake & Morgan, the fast-growing London-based bar/restaurant group which was sold to Bowmark Capital. Successful branded concepts that can profitably grow to 10 sites or more and demonstrate to the next buyer further roll out potential continue to attract very strong exit multiples with plenty of private equity money chasing the best businesses. So far Imbiba has been good at picking scalable and profitable concepts: note past performance is not a guide to the future.

Enterprise Investment Partners will provide fundraising and corporate finance advice to Imbiba.

Fees and charges

A summary of the fees and charges is shown below.

Initial charge 5.5%
Annual charge 1%
Performance fee 25%

More detail on the charges

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.

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
Leisure
Target return
2.5x
Funds raised / sought
£6.0 million / £10.0 million
Minimum investment
£10,000
Deadline
Discretionary
Last updated: 22 January 2019

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