Puma EIS

The Puma EIS backs growth orientated, asset focused businesses, and follows the Puma VCTs in seeking to reduce the risks usually associated with investing in unquoted companies. 

Our principal focus is on capital preservation, generating stable returns for our investors whilst seeking to offer robust downside protection by identifying businesses and opportunities with substantial asset-backing, including in the form of real estate, stock and contracted receivables. It is not intended to expose investors to the volatility that leveraged positions can generate. 

Puma EIS carries risk - see Risk Factors below. In particular, an investor's capital may be at risk.

What is an EIS

The Enterprise Investment Schemes (EIS) were designed to encourage investment into small companies and since 1994 over £12 billion has been raised for EIS companies.  The EIS may be attractive for investors as it offers significant tax advantages, but as with all investments they do carry risk, and therefore are not suitable for all investors.

For a UK tax payer, investing in Puma EIS funds can offer the following:

30% Income Tax Relief

Investors benefit from a 30% income tax relief on investments of up to £1,000,000 in each of the current and previous year

Tax-Free Capital Gain

Capital gains of disposals of investments through Puma EIS are tax free

Capital gains Tax Deferral

Capital gains on sales of other assets can be deferred if gains are invested in Puma EIS. Tax reliefs are subject to an individual’s circumstances and the income tax and capital gains tax reliefs are subject to a three year holding.

All the tax reliefs are subject to minimum holding periods and an individual's personal circumstances and are subject to change. For further information please consult the HMRC website.

Investment Criteria
To qualify for EIS treatment companies must have no more than £15million of gross assets and 250 employees.  Certain types of trades do not qualify for the EIS.

Structure
Investors hold shares in qualifying EIS companies directly and not through a fund or similar pooled investment vehicle. We offer a portfolio service, the Puma EIS, which enables investors to access a minimum of 3 EIS qualifying companies carefully selected by the Puma Investments team.

The Offer

Asset focused growth

Puma EIS backs growth orientated, asset focused business across a range of sectors.

Diversification

A diversified portfolio exposure to asset-backed investments across a range of sectors.

Closing Date
The discretionary management service has no fixed closing date and will remain open until further notice.

Key Features

An investment in Puma EIS carries risk and you should take your own independent advice. You should only invest in Puma EIS on the basis of the Offering Document which details the risks of the investment. Below are the key features:

Income Tax Relief

up to £1,000,000 per tax year (with ability to carry back)

CGT Deferral Payment of Tax

any chargeable gains may be deferred for a period whilst you hold the EIS investment

Tax Free Capital Gains

made upon the disposal of investments are tax free

Inheritance Tax Mitigation

Intended on investments held for more than two years and at the date of death

Note: Tax benefits are subject to personal circumstances, minimum holding periods and may be subject to change. Investors should take independent advice.

Independent Reviews


"In summary, the Manager may be fairly regarded as an expert in the sector of identifying, undertaking robust due diligence upon, and negotiating terms with companies that have to date provided capital preservation. 

Puma EIS is likely to appeal to conservative investors looking for relatively low risk (relative to other EIS) investment."

Tax Shelter Report, Allenbridge, September 2014

Score

85 / 100

Tax Efficient Review, Martin Churchill Review of Puma EIS

Example Investee Companies

Community Solutions


£7.6 million financing of six schemes providing supported living accommodation across the UK, secured on the properties. Projects owned and developed by HB Community Solutions, backed by the Morgan Sindall Group, which has delivered over £300m of healthcare and public sector projects over 10 years. 

Saville Services Ltd

£2.5 million investment into a specialist services provider for the building trade. The company had a substantial pipeline of projects already in place, with the first to go live being the development of up to 15 residential houses on the outskirts of Aberdeen. As security for its Work In Progress the company took security over the site and properties. The project is sponsored by Churchill Homes, an Aberdeen-focussed house builder with over 25 years of experience, and benefits from the considerable current economic strength of the Aberdeenshire region.  

Brewhouse and Kitche

£3.1m of financing provided to Brewhouse and Kitchen, a specialist pub owner/operator developing pubs with on-site breweries in strong locations across Southern England. The financing will support the roll out of this concept through the acquisition of selected freehold pub sites.

Summary of fees

Initial: INITIAL FEE 3% of amount subscribed
Ongoing: ANNUAL MANAGEMENT FEE 2% (plus VAT) p.a of amount subscribed
DEALING FEE 1% of amount subscribed (only on entry, not exit)
ADMINISTRATION FEE 0.35% (plus VAT) p.a of amount subscribed
Exit: PERFORMANCE FEE 20% of amounts realised by investors in excess of sums invested per portfolio company

Risk Factors

You can only invest in Puma EIS through a Financial Adviser who has assessed that an investment is suitable for you. An investment in Puma EIS carries risk and you should read in full the Puma EIS Investment Details. Below are the key risks:

General

Past performance is no indication of future results and share prices and their values can go down as well as up. The forecasts in this document are not a reliable guide to future performance.  

Liquidity

It is unlikely there will be a liquid market in the shares of the EIS-qualifying companies and it may prove difficult for investors to realise their investment immediately or in full.

Capital at Risk

An investment in PUMA EIS can be viewed as high risk. Investors' capital may be at risk and investors may get back less than their original investment. 

Tax Reliefs

Tax reliefs depend on individuals' personal circumstances, minimum holding period and may be subject to change.

Key Documents


Puma EIS - Overview

Puma EIS - Investor Update

Puma EIS - Investment Details

Puma EIS - Investor Agreement

Puma EIS Custodian Agreement (Reyker Terms and Conditions - Oct 2016)

Puma EIS - Intermediary Agreement

Independent Reviews


Puma EIS - Allenbridge Tax Advantaged Investments, EIS Review, February 2016