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.
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.
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.
Asset focused growth
Puma EIS backs growth orientated, asset focused business across a range of sectors.
A diversified portfolio exposure to asset-backed investments across a range of sectors.
The discretionary management service has no fixed closing date and will remain open until further notice.
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:
Note: Tax benefits are subject to personal circumstances, minimum holding periods and may be subject to change. Investors should take independent advice.
"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
85 / 100
Tax Efficient Review, Martin Churchill Review of Puma EIS
Example Investee Companies
£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% (inc VAT)||p.a of amount subscribed|
|DEALING FEE||1%||of amount subscribed (only on entry, not exit)|
|ADMINISTRATION FEE||0.35% (inc VAT)||p.a of amount subscribed|
|Exit:||PERFORMANCE FEE||20%||of amounts realised by investors in excess of sums invested per portfolio company|
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:
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.
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 depend on individuals' personal circumstances, minimum holding period and may be subject to change.