Puma Alpha EIS

The Puma Alpha EIS seeks to support the growth of UK SMEs by backing exceptional management teams. It seeks to deliver appropriate risk-adjusted returns together with the full range of EIS tax reliefs on 100% of funds subscribed to the Fund (after deduction of Financial Adviser charges).

Puma Alpha EIS carries risk – see Risk Factors below. In particular, an investor’s capital may be at risk.

What is an EIS

The Enterprise Investment Scheme (EIS) was designed to encourage investment into small companies, and since 1994 over £16.2 billion has been raised for EIS companies. The attraction of EIS is that 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 Alpha 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 tax years1

TAX-FREE CAPITAL GAIN

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

CAPITAL GAINS TAX DEFERRAL

Capital gains on sales of other assets can be deferred if gains are invested in Puma Alpha EIS. 

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 (the qualification criteria is different for 'knowledge intensive' companies). 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 an alternative investment fund, the Puma Alpha EIS, which enables investors to access a minimum of 3 EIS qualifying companies carefully selected by the Puma Investments team.

1Post 6 April 2018, this will be increased to £2 million provided that at least £1 million is invested in 'knowledge intensive' companies.

The Offer

The Strategy

Puma Alpha EIS aims to give investors exposure to quality operating businesses with excellent management teams, in sectors providing strong structural support for growth, with established potential end buyers that will enable investments to be realised.

Closing Date

The Fund has no fixed closing date and will remain open until further notice.

Exit

The Fund will seek to return capital to investors within four to seven years of subscription into the relevant portfolio company. The exact timing of exit will depend on commercial circumstances.

Key Features

An investment in Puma Alpha EIS carries risk and you should take your own independent advice. You should only invest in Puma Alpha EIS on the basis of the Investment Details 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.

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% In the case of each portfolio company, the Manager is entitled to receive 20% of the Upside Value¹ created. The Manager may structure the performance fee in the form of shares or another instrument in the portfolio company subscribed for at the point of investment or during the investment period. For the avoidance of doubt, where relevant, each equity subscription will be treated as a discrete investment for the purpose of the performance fee calculation. In the event an investor does not receive a Total Return² of at least 105% of the amount invested in the equity capital of the portfolio companies making up the investor’s portfolio, the performance fee will not be payable. Please note that any follow-on investment into the Fund will be treated as a separate investment forming a separate investor group.

¹ Upside Value is equal to the Total Return received by the investor in excess of the amount invested in the portfolio company’s share capital.

² Total Return is the total value received by the investor inclusive of, among other things, dividends and value received on the sale of equity. 

Risk Factors

You can only invest in Puma Alpha EIS through a Financial Adviser who has assessed that an investment is suitable for you. An investment in Puma Alpha EIS carries risk and you should read in full the Puma Alpha 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 Alpha 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 Alpha EIS - Overview

Puma Alpha EIS - Recent Transaction - Le Col

Puma Alpha EIS - Investment Details 

Puma Alpha EIS - Application Form

Puma Alpha EIS - Intermediary Agreement

Puma Alpha EIS - Investor Agreement

Puma Alpha EIS - Key Information Document

Independent Reviews


Puma Alpha EIS - Allenbridge Tax-Advantaged Investments, EIS Review, February 2018