Braveheart Investment Group plc

Braveheart Investment Group plc

July 04, 2011 03:00 ET

Braveheart Extends Viking Growth Fund Deadline to Maximise EIS Benefit

LONDON, UNITED KINGDOM--(Marketwire - July 4, 2011) - Braveheart Investment Group plc ('Braveheart' or the 'Group'), the AIM-listed specialist in unquoted technology investments for business angels, high net worth individuals and family offices, has further extended the deadline of its Viking Growth Fund ('Viking' or the 'Fund'), enabling subscribers to take advantage of changes to the Enterprise Investment Scheme (EIS). The Fund will now be open for investment until 31 December 2011. The maximum investment into the Fund is £500,000 per individual or £1 million per couple. The minimum investment is £10,000.

The Fund was launched to provide UK investors with a diversified portfolio of dynamic young companies that have market potential on a global scale. With income tax relief on EIS now increased to 30 per cent, the Group believes the Fund to be attractive particularly to those seeking a spread of companies without active involvement.

Brief outline of tax reliefs:

  • Income tax relief;
  • Capital gains tax deferral relief;
  • Capital gains tax exemption;
  • Loss relief against income or gains;
  • Inheritance tax – business property relief;
  • Inheritance tax.

From 6 April 2012, the annual amount that can be invested though EIS in a single company will be £10 million, while the annual amount that an individual can invest will be £1 million. The number of companies eligible is expected to increase from 6 April 2012, when the limit on employee numbers for qualifying companies rises from 50 to 250 and the cap on gross assets before investment rises to £15 million. This year the lifetime limit on entrepreneurs' relief rose to £10 million, making starting a business more attractive and potentially increasing the pool of EIS-qualifying businesses.

Geoffrey Thomson, Chief Executive of the Group, said: "EIS has moved up the agenda and we believe this provides a great opportunity for certain types of investor. The recent legislative changes show this Government is firmly committed to EIS to boost employment and wealth creation among high-growth UK companies. For every one pound invested in the Viking Growth Fund, one can set 30p against one's income tax liability, and this can be carried back a year if wished. If the investment does well, there is no capital gains tax to pay, whereas if a portfolio company fails, all the loss can be set against tax liability.

"At Braveheart we have been running EIS investments since 1997 so we are well versed in the intricacies of administering the scheme."

The Fund will be managed by Braveheart Ventures Ltd ('Braveheart' or the 'Manager'), a wholly owned subsidiary of the Group. The Group's Chief Executive and Chief Investment Officer have worked together at Braveheart since 2000 and have been responsible for establishing the existing client portfolio.

This portfolio is showing what are believed to be market leading returns: as at 31 March 2010, 21 exits have been achieved of which six have been initial public offerings ('IPOs'), three have been trade sales/secondary purchases and 12 have been write-offs. This performance equates to an Internal Rate of Return ('IRR') of 30%.

As at 31 March 2010, the Group had interests in 43 portfolio companies. This portfolio and new companies coming through will provide a strong pipeline of investments for the Fund.

The Fund is an unapproved fund in terms of Section 251 of the Income Tax Act 2007 and as such there are no time restrictions on when the Fund's assets must be deployed. However, the Manager anticipates that the Fund will invest in at least five companies and that these investments will be made within a two-year timeframe. There is no minimum or maximum size of the Fund.

Investments will be high in risk. Investors may not recover the money they invest. The Fund is open to investment professionals, certified high net worth individuals and sophisticated investors.

Notes to editors

Braveheart Investment Group makes and manages investments in young, emerging British companies, specialising in building tax-efficient portfolios for business angels, high net worth individuals and family offices. Braveheart was founded in 1997 by a small group of investors to encourage and syndicate investments in privately held companies that offered opportunities for significant growth. Fourteen years on, Braveheart is a public company with a demonstrable track record in early-stage technology investing, an established client base and offices in Perth, London and Yorkshire.

Investments are made in unlisted companies where there is potential for significant growth through successful commercialisation of IP. Through close relationships with leading universities and innovation centres, Braveheart has access to a wide variety of emerging commercial opportunities at early stages. There are currently some 45 companies in Braveheart's diverse portfolio (includes all companies where the Group has a financial interest) and it has completed more than 100 deals.

Following the 2010 acquisition of Envestors Ltd, the London based specialist corporate finance advisory business, Braveheart has greater geographical reach and offers a unique and comprehensive suite of tax-efficient products to high-net-worth investors.

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