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Highgate Associates launches EIS fund


Highgate Associates and Enterprise Corporate Finance have launched an EIS fund, called the HG Tech Fund, which is designed to maximise value for investors and investee companies.

The fund is open to sophisticated investors who have a minimum of GBP10,000 to invest and who are looking to enhance their investment portfolio with exposure to high growth UK high tech businesses with EIS tax breaks.

Unlike most other EIS funds, the HG Tech Fund is designed to ensure that the full value of investor funds receives 100 per cent EIS relief. The standard industry procedure is to net off initial charges plus a further 17.5 per cent VAT, which could add up to eight per cent or so of investors’ funds.

The fund managers offer investee companies help with financial management, marketing and, where needed, senior level management to ensure that the investee companies grow and meet financial targets.

Before the HG Tech Fund can take any profits itself, it will have had to deliver a minimum of six per cent annualised return to investors.

Susan Phillips (pictured), director general, EIS Association, says: “I am delighted to be working with the Highgate team in launching the HG Tech Fund. To my mind, the ethos of this fund represents the intrinsic sentiment behind the Enterprise Investment Scheme, being to foster and encourage private sector investment into growing British companies. It is not just about spotting a winning technology but understanding its market and, above all, working with the management to get ahead of the competition, market the product successfully, drive the company forward, add in necessary skills where needed and keep the company on track.”

The HG Tech Fund is open now for new investment and has its initial close on 4 April 2010. The portfolio will aim for a spread across a number of investee companies and to be fully invested as quickly as possible so that investors can claim their EIS tax relief promptly.

The fund is looking to deliver a return to investors within a three to five year investment window, with a roll-over opportunity to maximise the IHT and CGT potential.

The fund is advised by Enterprise Corporate Finance, established in 1992 to advise EIS companies.

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