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 | 1% | of amount subscribed |
| DEALING FEE | 1% | of amount invested in portfolio companies (only on entry, not exit) | |
| Ongoing: | ANNUAL MANAGEMENT FEE | 1% (plus VAT) | of amount subscribed, to be deducted from exit proceeds of each portfolio company prior to distribution |
| 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.
Puma Alpha EIS remains open to new investment.
All new applications should be sent to:
Investor Services,
Puma Investments,
Cassini House,
57 St James's Street,
London, SW1A 1LD
Cheques should be made payable to “Pershing Securities Ltd. Client Hub Account”. If payment is being made electronically, you will first need to submit your application form and supporting documents to the above address. On receipt, a member of the Puma Investor Services team will be in touch to provide you with a unique payment reference number, along with the bank details to which your payment should be made.