EIS and SEIS specialist Daedalus Partners has appointed Gary Robins and Simon Emary as partners to create the newly-branded Radius Equity.
David Harding will join Radius Equity as chairman.
Daedalus Partners is an independent FCA regulated alternative asset boutique. It was founded in 2011 by Stephen Norton and Gavin Harrison, with a focus on EIS and SEIS structured investments. Since then it has raised some GBP34 million through 11 offers.
Robins and Emary played leading roles as founders of Hotbed and Rockpool Investments, two high profile businesses in the sector.
Radius Equity will now increase the scale of its offerings to meet growing demand from investors for a wider range of investment opportunities, from early stage through to more mature businesses.
Demand from investors for EIS and SEIS qualifying investments has grown rapidly since the Enterprise Investment Scheme was expanded in 2012 and the Seed Enterprise Investment Scheme was introduced.
In the 2012/13 tax year, 4,075 UK companies applied for EIS investment approval, up 90 per cent from 2,147 the previous year.
Norton says: “Gavin and I are delighted that Gary and Simon are joining Radius Equity. They bring to Radius Equity vast experience of private equity and tax-efficient investments.
“EIS and SEIS are one of the few investment opportunities, outside of pensions, that offer significant tax breaks. As other tax planning schemes are now seen as beyond the pale, EIS and SEIS are attracting more and more interest from HNWs and the mass affluent. This is really good news for UK SMEs as that investment is being used to fill the funding gap left by the retrenchment of UK banks.”
Robins says: “EIS and SEIS investing is a rapidly growing market and this merger means that Radius Equity will be well positioned to provide the range and volume of opportunities that our clients want from us.”