Investment Objective

The Fund will target the funding gap that exists for companies which have de-risked their technology, developed traction with customers and now seek funding to scale their commercial operations.

The Fund will offer investors access to the knowledge and investment skillset that the Newable Team have developed by being technology sector focused. Specific sectors within the technology field that may receive focus include:

• Electronics: Hardware, Components & Firmware
• Automation: AI, Data Science, Cyber
• Med-Tech: Devices & Diagnostics
• Space: Downstream Data Technologies

Newable will screen investment opportunities, which are derived from Newable’s professional services network, 35-year track record and long-term partnerships with the UK government and business community. Broadly speaking, investee company selection will be driven by the following factors:

• Management team: High calibre, committed, track record of scaling and exiting businesses
• Technical; significantly mitigated through product development and previous funding
• Commercial: Evidence of revenue generation
• Large addressable market in the UK and where appropriate, globally
• Evidence of scalable business model (typically with a B2B focus) with a growing and predictable revenue stream
• Sustainable competitive advantage
• Competing on value rather than price; evidenced by increasing customer productivity.

Exit Strategy

Proceeds will be returned to Investors as Investments are realised, after deducting the carry and fees where applicable. After five years, any residual shareholdings may be transferred to the Investors based on the outlook at this time, at the discretion of the Appointed Representative and Manager, acting in agreement. Investors will not be permitted to make withdrawals and all subscription monies will be fully committed to the Fund upon subscription (subject to any statutory cancellation rights).

Fund Manager

Larpent Newton & Co Limited

Fund Provider

Newable Ventures Limited

Fees

Application fee

4% of the subscription amount as at the Closing Date, and will be deducted from the subscription monies. This fee will cover the incurred time and costs of setting up the Fund.

Management Fee

1% plus VAT is charged in the first year of the Fund only.

Compliance charge

£30 will be charged upon receipt of individual applications (charge per application) to cover anti-money laundering compliance costs. The Administrator and Custodian will not charge the Fund an annual fee as its charges will be met by Newable from the monitoring fees charged to Portfolio Companies and the Appointed Representative will be responsible for paying the cost of these charges.

Performance Fee

In order to align interests between Newable and Investors, no performance incentive is payable until Investors receive cash proceeds equal to 1.1x of the total invested in Qualifying Companies. The performance incentive will then be payable at a rate of 20% of the exit proceeds above a 1.1x Application fee: 4% of the subscription amount as at the Closing Date, and will be deducted from the subscription monies. This fee will cover the incurred time and costs of setting up the Fund.

Dealing Charge

Investors in the Fund will pay the Administrator and Custodian a commission on each purchase and sale transaction of the underlying Investments at the rate of 0.25% of the value.

Re-registration Fee

Although there are no charges for changes within the Administrator and Custodian’s nominee, the Administrator and Custodian may charge a reregistration fee of £30 to investors per holding if an Investment is to be transferred out of the nominee’s name (for example, upon termination or in the event of a transfer to the nominee of a new Administrator).

Transaction Fee

Investee companies pay a 3.5% transaction fee upon successful completion of investments.

Monitoring Fee

Investee companies pay a 1.5% annual monitoring fee on investments.

Kuber Specific Arrangements

Kuber investors will not be charged the Compliance Charge, Dealing Charge or Re-registration Fee – Kuber’s Custodian and Nominee (Woodside) will be making and holding investments on behalf of Kuber investors.

Kuber investors will be charged a reduced application fee of 2% (rather than standard 4%).