UK Challenger Fund

At a glance

Current status: Closed (Mar-2018)
Fund type: EIS
Investment goal: Capital growth
Focus: UK SMEs, multi-sector

Key Information

The UK Challenger Fund seeks to invest in and provide support for UK small and medium-sized enterprises across a range of sectors including (but not limited to) technology, engineering, fintech, media, lifestyle, and food and beverage. The Fund will be assisted by the Company Mentor, General Investment Partners Limited, who are a team with strong experience across the sectors in to which the Fund aims to invest, and it is this team (headed by Jasper Smith) that will mentor the Investee Companies.

The Fund will seek to provide start-up, early-stage and follow-on funding to UK small and medium-sized enterprises by purchasing equity in qualifying companies across a range of sectors including technology, engineering, media, lifestyle and food & beverage. The Investment Manager intends that the Fund will invest in Investee Companies that require levels of investment in the region of between £50,000 and £1,000,000. It is expected that the Fund will invest in a portfolio of at least six Investee Companies, depending on the capital requirements of each Investee Company and the size of the Fund. It is noted that the entrepreneurs who provide Mentoring Services may also be shareholders in each Investee Company.

EIS tax incentives

The companies the fund invest in are expected to be EIS-qualifying, which makes UK Challenger Fund EIS suitable for qualifying clients who would potentially benefit from the following tax reliefs:

Up to 30% income tax relief
Tax-free investment growth
Capital gains deferral
Inheritance tax relief
Loss relief

Please note: EIS tax reliefs are only made available to investors because of the higher risks associated with investing in early-stage companies. Also, the availability of tax reliefs will depend on the investor's personal circumstances, and tax legislation can change in the future. See guide for further information.

Fund team

Jasper Smith View bio

Example companies from the current fund portfolio

PlayWorks is pioneering post-app-store mobile games across social networks and messaging apps. The huge growth in platforms such as Facebook Messenger, WeChat, Apple iMessage and WhatsApp and their universal adoption of games has created the world's largest gaming platform with over 3Bn potential monthly users. With partnerships in place with Facebook, Comcast, LG, Roku and many others, and a massive catalog of live games, PlayWorks is a trusted leader at the forefront of this new revolution.

View website

VN Aerotoxic Detection Solutions (ADS) has developed the world’s first real-time sensor capable of detecting chemical compounds present in aircraft cabin air supplies

View website

Instream Energy Systems develop hydrokinetic power generation systems for near-shore tidal marine and inland waterways. Instream’s scalable vertical axis hydrokinetic turbines (VAHTs) converts the kinetic energy in moving water into cost-competitive, renewable electricity with minimal environmental impact.

View website

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Important information

To invest, you must be an eligible investor. To be an eligible investor, you must be qualifying as one or more of the following:

• You meet the FCA’s definition of a professional investor.

• You meet the FCA’s definition of a certified high net worth investor.

• You meet the FCA’s definition of a self-certified sophisticated investor.

• You meet the FCA’s definition of a self-certified restricted investor.

• You are a client of an FCA authorised firm that will provide advice on the suitability of the product in question.

Risk warning

Important information for private investors – Reliance on the information provided here to engage in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested. Your attention is drawn to the risk section contained within the Information Memorandum. Investments are typically in unquoted shares in small companies, the value of which can be volatile and are often difficult to sell. Nothing on this website constitutes investment, tax, financial, legal, regulatory, or other advice by Sapphire Capital Partners LLP.

The value of an investment may go down as well as up, and you may not get back the full amount invested, and you may therefore lose some or all of your investment.

If you are unsure of the suitability of any investment for your circumstances, please contact your independent financial advisor or other professional advisor authorised under the Financial Services and Markets Act 2000 (FSMA) who specialises in advising on investments of this type. Tax reliefs depend on individual circumstances. There is no guarantee however that the tax reliefs (such as SEIS and/or EIS reliefs, CGT reliefs or IHT relief) will be available on any investment made or that if it is initially available, it will not be subsequently withdrawn. Any references to tax laws or rates are based on current legislation, all of which are subject to change and are provided as a guide only. Prospective investors are advised to obtain their own investment and taxation advice and should consult their own professional advisors on the implications of investing.

Investments made in investee companies via funds managed by Sapphire Capital Partners LLP may not be covered by the Financial Services Compensation Scheme (FSCS). For more details, please contact us or refer to their website: https://www.fscs.org.uk

Past performance is not a guide to future returns. CAPITAL AT RISK.

UK Challenger Fund

Investing in enterprises across various sectors.

At a glance

Key Information

EIS tax incentives

Fund team

Example companies from the current fund portfolio

Explore other investments

Important information

Risk warning

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