Venture capital firm Vala Capital has opened a new tranche for its enterprise investment scheme (EIS) following the successful launch of its first EIS Portfolio in early 2019.The EIS Portfolio’s innovative performance fee structure means investors won’t pay any fees unless profits are made and their entire investment is eligible for EIS tax relief. There are no upfront charges or ongoing fees to pay, with all administration costs paid for by the companies that Vala Portfolio invests in through a one-off charge on deployment of cash. The only fee payable is a 20 per cent performance fee on profitable exits.
The Portfolio, managed by Vala’s investment committee led by Jasper Smith, brings together a team of highly successful entrepreneurs with proven track record of delivering strong returns for shareholders. The team is targeting a 100 per cent return over a five-to-seven-year time horizon, investing in between six to 10 companies across sectors in which it has in-depth knowledge and experience – including engineering, lifestyle and fintech.
Companies in the latest tranche of the portfolio will include marine engineering specialist, Cetus, bespoke travel business Pelorus and Centology, which is developing software to help independent financial advisers (IFAs) run their businesses and manage client investments.
Vala aims to raise between GBP7-10 million for the tranche, which will be invested before this year’s 5 April 2020, tax year deadline. The minimum investment is GBP25,000 and eligible investors are expected to be able to carry back tax reliefs to the previous tax year.
Jasper Smith, Vala’s founder, says: “I have been an entrepreneur and an investor all of my life. The network my team and I have built across multiple sectors over the past 30 years enables us to work with some of the best entrepreneurs in the market, helping them build fantastic businesses – we have a good track record of doing that.”
Smith added that his team’s venture capital experience – as both entrepreneurs and investors – has a combined track record of 35 exits with an aggregate three-fold return.
Last year, the Vala EIS Portfolio invested in 10 companies, including yacht designer Arksen, bakery Great British Biscotti Co and specialist video game maker Play Works.