Puma Alpha EIS

Puma Alpha EIS aims to deliver compelling returns through investments in companies that have graduated from 'start-up' to 'scale-up', while delivering the full range of tax reliefs that come with EIS investing.

Avoiding the volatility of the riskier start-up space, our objective is to deliver the best-possible risk-adjusted returns, so investors experience less volatility and more consistent yields.

Why Puma Alpha EIS

  • Scale-ups not start-ups

    We invest in scale-up businesses with a proven product and experienced management teams. By investing in scale-up, high-growth businesses there is the potential to achieve start-up levels of return at lower risk. When examining potential investment targets, we focus on leadership quality, the proposition's commercial validity and clarity of the growth plan.

  • Established EIS manager

    Puma Investments is part of an organisation that raised its first private equity fund in 1996 and has a 24-year track record of investing in small and medium-sized enterprises in the UK.

  • Diversification

    Puma Alpha EIS's sector agnostic investment mandate offers portfolio diversification and allows us to source opportunities across the market. It is also able to co-invest alongside the Puma VCTs, enabling swifter deployment whilst giving investors access to a wider pool of investments.

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.

Example Alpha EIS investment

Le Col

Investment

£4.85 million
(of which Puma Alpha EIS invested £3.1 million)

Sector

Sports apparel

Trading locations

Exporting to over 50 countries

Why we invested

  • Le Col has a compelling combination of in-demand products, professional insight and management experience.
  • In 2018, its revenues more than doubled and online sales grew six-fold, year-on-year. In 2019, revenue grew by 70%.
  • Le Col’s robust growth plan is complemented by a supportive sector. Cycling products already contribute £700 million to the UK economy and this figure will likely rise as the Government strives to double cycling volumes by 20251.
  • Based in the UK and exporting to over 50 countries, Le Col owns its own factory in Treviso, Italy.

1 The value of the Cycling Sector to the British Economy, Bicycle Association, June 2018

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.

Our digital application form process 

To ensure our application process continues without interruption during this time, we have expanded our use of DocuSign across our entire product range. DocuSign allows all applications to be completed digitally without the need to print, scan and post. If you or your clients would prefer to complete a handwritten application, we are also happy to accept scans, provided we are still sent the hardcopies for record-keeping. Either follow the process below, or to discuss finding a process that works for you, please contact your local BDM, via email here, and they’ll be more than happy to assist.

  • To receive an application form via DocuSign, please request a secure link from your usual business development contact, or call us on 0207 408 4070.
  • Alternatively if you have got signed application forms printed and ready to go, simply scan or clearly photograph them on your smartphone and email them to us at: info@pumainvestments.co.uk
  • The original print copies should be sent through to us as soon as practicable thereafter for the investment to be allotted.

Key documents


Puma Alpha EIS - Investment Details 

Puma Alpha EIS - Overview

Puma Alpha EIS - Investor Agreement

Puma Alpha EIS - Intermediary Agreement

Puma Alpha EIS - Custodian Terms 

Puma Alpha EIS - Application Form

Puma Alpha EIS - Key Information Document