The strategy is to protect the Client’s capital whilst targeting a 3% to 6% annual return by subscribing for shares in one or more Trading Companies. The Trading Companies will provide short-term debt to UK SMEs: Trade Ventures provides debt finance to UK SMEs to finance their national and international trade by using outstanding invoices as collateral and Digital Ventures provides debt funding to UK tech-enabled businesses for the purpose of financing digital media expenditure for the acquisition of new users. Loans will typically be between 30 and 180 days and diversified across multiple borrowers and obligors. Each loan or portfolio of loans will be insured against credit default (except where the obligor is a state entity). The Trading Companies should qualify for Business Relief providing relief from IHT after two years.
The service is evergreen. Clients can elect to withdraw in whole or in part at any time. We expect to be able to fulfil requests within 90 days. Clients’ shares will either be sold to an in-coming client or bought back by the Trading Company.
The Investment Manager is Sapphire Capital Partners LLP (“Sapphire”), a multi-award-winning investment management firm and who are authorised and regulated by the Financial Conduct Authority (FCA Reference: 565716).
Sapphire is a specialist investment management firm established to provide investment management services and bespoke fund solutions.
The Investment Advisor is Velocity Credit Advisors Limited and which is the appointed representative of Sapphire. Velocity Credit Advisors Limited has a senior team with a track record and experience across a wide business spectrum including finance, marketing and law. Velocity Credit is a subsidiary of Velocity Capital Advisors which was set up in 2015 as a vehicle to facilitate, via SEIS and EIS Funds, participation in exciting companies which have technology at their core. The Velocity Capital Advisors founders come from entrepreneurial backgrounds, which we believe is a real asset to our business and the investee companies. Velocity has been operating for over four years now, and in those years the SEIS and EIS funds have achieved an investee company cash exit of 6.5x, and the overall current performance of the funds is estimated to be 3.5x to 1.3x.
Fee type | Fees charged to Investor (including VAT) | Fees charged to Investee Companies (including VAT) |
---|---|---|
Initial Fee | n/a | 4% (+ VAT if app.) |
Annual Management Fee | n/a | 2% (+ VAT if app.) |
Dealing Fee | A dealing fee of 1% (+ VAT if app.) on withdrawal (but includes any stamp duty up to 0.5%) | 1% (+ VAT if app.) on subscription |
N/A
Discretionary Managed Service
Trade Ventures portfolio - 3% per annum;
Digital Ventures portfolio - 6% per annumBusiness Relief
Trade finance and Venture debt
1 or more investee companies
Custodian: WCS Nominees Limited
Nominee: Woodside Corporate Services Limited
An investor qualifies as an High Net Worth investor if they have
(a) An annual income to the value of £100,000 or more;
(b) Net assets to the value of £250,000 or more. Net assets for these purposes do not include:
(i) the property which is their primary residence or any loan secured on that residence;
(ii) any rights under a qualifying contract of insurance within the meaning of the Financial
Services and Markets Act 2000 (Regulated Activities) Order 2001; or
(iii) any benefits (in the form of pensions or otherwise) which are payable on the termination of their service or death or retirement and to which they are or (or their dependants are), or may be, entitled.
An investor qualifies as ar Self-Certified Sophisticated Investor if at least one of the following applies:
a) they are a member of a network or syndicate of business angels and have been so for at least the last six months prior to the date below
b) they have made more than one investment in an unlisted company in the two years prior to the date below
c) they are working, or have worked in the two years prior to the date below, in a professional capacity in the private equity sector, or in the provision of finance for small and medium sized enterprises
d) they are currently, or have been in the two years prior to the date, below a director of a company with an annual turnover of at least £1 million