Committed Capital Growth EIS

Investment Objective

The Committed Capital Growth EIS represents a compelling opportunity to invest in high growth UK based technology companies across a range of industry sectors.

Our primary objective is to achieve a target ROI of 2-3x (excluding tax reliefs) for investors from high quality investments; through the careful selection of potential investee companies, excellence in corporate finance skills and active support of portfolio companies.

Our investment methodology is based on the principle of unlocking and accelerating profitable growth in portfolio companies. In analysing potential investee businesses, we look for rapid growth in the underlying market as well as a technology and business designed to benefit from this growth. Investee companies must have a compelling proposition, be fully formed and have strong management. We are attracted by companies poised to grow rapidly with the infusion of equity and expertise. These factors are established during exhaustive due diligence. We believe our rigorous due diligence process as a corporate finance house, has resulted in our returns to date of 2x ROI (excluding tax relief).

Investments are selected when the following criteria are met:

  • Dynamic Market – fast growing addressable market with low competitive intensity.
  • Well-Positioned Company – strong management team, robust forecasts for rapid growth over the investment period and clear potential for exit.
  • In-Demand Product – (or service) fully developed, addressing a clear market need, with a sustainable technology-based competitive advantage.
  • Post Revenue – generating significant sales (£1m+ annually).
  • Investor Protections – significant minority (20-40%) of the equity typically sought, a board seat and typical shareholder rights required.

Exit Strategy

The intention is to exit within 3 to 5 years of monies being invested via trade sale, IPO, or where appropriate, a sale to a strategic co-investor. Typically exit is through a trade sale or strategic sale.

Since 2001 the team has achieved annual returns of 41% with an average ROI of 2x (excluding tax reliefs), with an average investment holding period of 4 years.

Exit History

CompanyDate of exit Share purchase priceShare exit prices Total return (net of reliefs)
Synexus Clinical Research01/12/2007£1.00 £1.761.8
Espresso Group Limited01/10/2009£1.00 £4.284.3
Black Teknigas Limited01/10/2009£1.00 £1.521.5
Netcall01/02/2004£0.10 £0.242.4
Astraeus Limited01/07/2007£1.00 £0.240.2
Ashford Colour Press Limited01/10/2009£1.00 £1.211.2
House of Dorchester01/10/2009£1.00 £2.342.3
Vyre Limited01/10/2009£1.00 £6.676.7
Mining Communications Limited01/10/2006£1.00 £1.781.8
SAS12/12/2009£0.16 £0.221.4
Styles & Wood Holdings Limited01/11/2006£1.00 £7.747.7
Travel Class01/06/2006£1.00 £2.572.6
PSP12/12/2009£0.62 £0.851.4
Bond Aviation Solutions01/10/2006£1.00 £1.771.8
LG & DE Limited01/10/2004£1.00 £4.664.7
Speedtax12/12/2009£1.77 £1.851.0
Atlantic Foods Group Limited01/10/2009£1.00 £1.331.3
TC Communications Holdings Limited01/09/2010£1.00 £1.111.1
Fairstone01/05/2014£0.05 £0.091.8

Fund Manager

Sapia Partners LLP

Sapia Partners is an entrepreneurial and nimble firm, unencumbered by bureaucracy or politics. At Sapia Partners, we foster an entrepreneurial spirit by encouraging our employees at every level to bring forth their most innovative ideas to create value for our clients and business partners.

We focus on three main business segments: Investment Management, Corporate Finance Advisory and Real Estate Advisory. Our team members have significant experience in creating value through investing in and advising on transactions across Europe and the US.

For further information please visit sapiapartners.com

Fund Provider

Committed Capital Limited is an investment management and corporate advisory business that was founded on the basis that companies need human capital in addition to finance to support their growth. The team has a proven track record of working with growth companies to create value for shareholders through careful investment selection, rigorous due diligence, efficient transaction execution and providing investee companies with hands-on support.

Fees

Investor Charges
Initial Charge

There is a charge of 1.5% plus VAT calculated on the gross investment into the fund less any adviser charge. The adviser charge together with the initial charge will be deducted at the outset from the investment into the Fund. This net amount is the Managed Amount for the calculation of the Annual Management Charge (AMC) as set out below.

AMC

There is an AMC of 2% plus VAT applied to the Managed Amount, referred to above. An amount equivalent to the first 3 years’ AMC's will be calculated at the outset and be held back in cash in the client’s account.

In years 4 and 5, the Managed Amount is reduced by any investment returns made to the investor and the 2% plus VAT charge is accrued until returns allow the charge to be paid. There is no annual charge after Year 5.

Performance Fee

There is a performance fee payable equivalent to 20% of the profits returned in excess of the gross amount originally invested into the Fund (excluding all tax benefits).

Investee Company Charges

Investee Companies are typically charged an arrangement fee of around 3%.

Investee Companies are charged a non-exec board member fee typically between £15-£25k per annum

For further information please do not hesitate to contact us on:
+44 (0) 20 7952 6685
info@kuberventures.com
www.kuberventures.co.uk

Fund at a glance

Scheme Categorisation

Alternative Investment Fund

Target Return

£2.50 for every £1.00 invested

Scheme Strategy

Private Equity EIS

Investment Sector

Growth Stage UK Technology

Target Diversification

They aim to ensure that investors’ portfolios include 8-12 companies, and that no sin-gle company investment accounts for more than 15% of their portfolio

Nominee & Custody Arrangements

The Nominee: WCS Nominees Limited

The Custodian: Woodside Corporate Services Limited