The information provided on this section of the website is intended for UK financial advisers, wealth managers and paraplanners at firms authorised by the Financial Conduct Authority to carry out regulated financial activities.
Please be aware that some of our investments are high risk. You should read the risks associated with each product before deciding whether to recommend it to a client. You’ll find the risks on the relevant product webpage and on our guide to risks page.
We do a lot of things, but we don’t offer investment, tax or legal advice.
Please confirm you are a financial adviser.
You have been redirected to the retail investor website
None of the information provided here is investment or tax advice and we always recommend you speak to a financial adviser before investing.
Some of our investments are high risk. You should read the risks associated with each product before deciding whether to invest. These can be found on the relevant product web pages and in our guide to risks page.
Please confirm you have read the information above.
This website is intended for retail investors.
None of the information provided here is investment or tax advice and we always recommend you speak to a financial adviser before investing.
Some of our investments are high risk. You should read the risks associated with each product before deciding whether to invest. These can be found on the relevant product web pages and in our guide to risks.
Please confirm you have read the information above.
Important information for institutional investors
This section of the website is intended for the sole use of UK-based institutional investors. Before accessing the site, please confirm you meet the criteria in this disclaimer and are happy to proceed on this basis.
The content of this website is provided for informational purposes only and is not intended to be investment advice or solicitation to buy or sell any securities or engage in any other transaction.
Institutional investors should have professional experience of participating in unregulated schemes. These schemes put investor capital at risk and are illiquid.
More detailed information on the specific risks of a particular fund or strategy will be available in the offer document or prospectus, or available on request.
Please confirm you have read and agree to the information above.
Things to consider when choosing an EIS investment
Things to consider when choosing an EIS investment
There are a number of important factors investors need to think about when choosing the EIS investment that’s right for them.
Consult a financial adviser
Every investor is different, and their personal circumstances affect the level of risk they’re willing to take.
It’s crucial for investors to consult a financial adviser who can help them find an EIS investment that fits their investment goals and financial limitations.
Consider the risks
Investors should carefully consider and understand the risks associated with investing in EIS opportunities. An investor’s capital is at risk if they make an EIS investment. EIS-qualifying companies are not listed on a stock exchange (with the exception of AIM) and could fall in value – including to nil.
It’s important to note that the value of EIS shares could rise or fall quite sharply compared to larger, more established companies. Also, it’s not easy to sell shares in unlisted companies.
EIS tax reliefs depend on the company maintaining its EIS-qualifying status for at least three years. Due to the nature of the investment, it’s possible that a company might cease to be EIS-qualifying and any relief previously granted will have to be paid back to HMRC.
Finally, tax rules could change in the future. This could affect the kind of tax relief investors are allowed to benefit from (the value of tax relief depends on the individual circumstances of an investor).
Choose the right investment manager
If an investor’s considering investing in a portfolio of EIS-qualifying companies chosen by an investment manager, they should look at their EIS manager’s experience in terms of choosing and investing in smaller companies. (But remember: past performance isn’t a guarantee of future returns.)
Also, note that the time it takes to sell EIS shares is likely to depend on when they were bought and when there’s an opportunity to sell them (this could take up to ten years or more). It might be worth choosing an EIS manager with a good track record of providing viable exit opportunities.
Check the fees
Investors should check the fees of the EIS portfolio service they’re interested in, and compare them with what other EIS managers charge.
A portfolio of around 10 -15 early-stage businesses with high growth potential, selected by one of Europe's most established venture capital teams, that offers a number of valuable tax reliefs which offer some compensation for taking on high risk.
