Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Please take two minutes to learn more .

EIS Portfolio Fund

Open for new investment

Specialising in the provision of growth capital and strategic support to ambitious SMEs. Our team is responsible for investing EIS funds into growing businesses, on behalf of our underlying investors.

Investment size typically £500k+

We are sector agnostic

Targets an exit between 4 and 6 years

What is the EIS Portfolio Fund?

The Seneca EIS Portfolio Fund is an Alternative Investment Fund managed by Seneca Partners Ltd. The Fund is evergreen, meaning that it is open for new investment all year round and will not close having raised a predetermined amount of money.

The Fund is targeting a return of 1.8x (equivalent to over 1.5x after all fees), excluding any tax reliefs.*

Our Annual Management Charge is capped to a maximum of 5 years and only charged out of any exit proceeds that represent a profit on the total amount invested from your Subscription.

Including subscriptions received in the fund’s previous guise as the EIS Portfolio Service, our EIS Portfolio offer has received over £70 million of investment.

*The target return is not guaranteed. You may lose some or all of the money you invest.

 Please see the Investment Memorandum for full details of our fees and how they are charged.

Reasons to invest

High growth opportunity

Investments will likely include a mixture of holdings in established companies and some earlier stage businesses, all requiring capital growth. The Fund does not invest in start-ups

Tax reliefs

Including relief against Income Tax, Business Relief, deferred/no Capital Gains Tax. Please speak to your financial adviser for more information

A diversified portfolio

Investee companies will be a mix of private companies and those with shares quoted on the Alternative Investment Market (“AIM”)

Risks to consider

Risks to capital

There is a high risk of capital loss when investing in smaller companies. Growth is not guaranteed and you may get back less that you invest or no return at all

Tax treatment may change

Personal circumstances, rates of tax, tax benefits and allowances may change and therefore tax benefits are not guaranteed

Volatility and liquidity

There is no recognised market on which shares in private companies can be traded therefore it may not be possible to release investments in a prescribed timeframe. It is possible to trade shares in AIM quoted companies but this is dependent upon there being willing buyers

Companies we've invested in

Gear4music

Online music equipment and musical instrument retailer.

Mission Labs

Powering the Future of Business Communications by transforming the way businesses communicate with their customers and communities.

EIS Portfolio highlights

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investee companies
£ 0 m+
invested
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investment rounds
£ 0 m+
returned to investors

The EIS Portfolio Fund was launched in June 2021. Given it is an EIS fund, no exits have been achieved or are anticipated until 2024 at the earliest. We have therefore used our wider track record as a simulated performance for this fund. The above figures are based on the businesses that our previous EIS Portfolio Service has invested on behalf of investors in their individual portfolios. These figures cover the whole period of investing. Please note that Fees as described in the Information Memorandum may apply on any exits. Past performance is not a guide to future returns. You may lose some or all of the money you invest.

Important information

The Seneca EIS Portfolio Fund is an Alternative Investment Fund for the purposes of the Alternative Investment Fund Managers Directive. It is not a collective investment scheme within the meaning of section 235 of the Financial and Services Market Act nor a Non-mainstream Pooled Investment by virtue of it being a fund complying with the meaning of Article 2 in the Schedule to the Financial Services and Markets Act 2000 (Collective Investment Schemes) Order 2001.

The investments we offer are high risk in nature and therefore not suitable for everyone. If you would like to find out more about the Enterprise Investment Scheme, EISA (the Enterprise Investment Scheme Association) have produced a guide.

Past performance is not a guide to future returns. Target returns are not guaranteed. You may lose some or all of the money you invest.

How can I invest?

We recommend that you seek independent financial advice before you invest. Please make sure that you have fully read and understood the Information Memorandum and Terms and Conditions applicable to the EIS Fund product. Please also read our Custodian’s Terms of Business. To make an investment into this product please complete and return the appropriate Application Form available on this page. Alternatively, please speak to our Client Relations team for more information.

Further information

When you Subscribe to the Fund, your Subscription will be held in cash by the Custodian, helping build a sum of money for the Fund to invest (an “investment tranche”). Periodically, we will complete what is known as a “soft close” so that we can start making investments for all those investors who are included in that “investment tranche”. The timing of these “soft closes” will be designed to ensure efficient investment of investors’ money. Once your Subscription is included in an “investment tranche”, we will begin buying shares on your behalf.

 

The Fund will remain open for further Subscriptions which will build to form the next “investment tranche”.

We do not set a minimum investment amount. However, there is a minimum initial fee of £500 + VAT. You should therefore think carefully about the affect of this minimum fee if you intend to invest a smaller amount (e.g. less than £20,000).

We have designed our EIS Portfolio Fund to appeal to investors who are looking to invest in UK SMEs with the aim of achieving capital growth over the medium-term (five to six years) in an investment that qualifies for the tax reliefs available under the Enterprise Investment Scheme.

They will have experience of investing in tax advantaged investments (e.g. EIS, VCT) or buying shares in FTSE 100, FTSE 250, AIM quoted, smaller quoted (e.g. the Aquis Stock Exchange) or unquoted companies.

 

Those investors will understand what factors drive the movement of share prices and how in turn that impacts the value of their investment. They will also understand and accept the risks associated with making an investment in the Fund (see pages 24 to 25 of the Information Memorandum). Their current financial situation will mean that they do not need access to the amount they invest for at least five years or need an income from it. They should also be able to withstand the loss of some or all of that amount.

 

You should not invest in this Fund if you lack the requisite knowledge and experience, are looking to invest for less than five years, need your investment to pay an income or are risk averse or have a low tolerance to risk.

Typically, we target well-managed businesses that can demonstrate established and proven concepts, good balance sheet strength, profits or visibility of profit and cash generation and which are looking to take the next step in their growth phase. As a guide, we would normally look for the following key criteria:

 

  • Attractive growth prospects
  • Defensible market position
  • Realistic entry value expectations
  • Strong management team
  • Profitable or visibility of profits
  • Potential to add value from Seneca network
  • Exit available between 3 and 5 years

If you are a financial adviser, you can request a copy of the Hardman & Co review of our EIS Portfolio Fund by emailing tellmemore@senecapartners.co.uk

 

Alternatively, you can access a review completed by Tax Efficient Review or MICAP, if you are a subscriber.

 

Copies of previously issued EIS 3 certificates are available to download from our secure online portal. If you do not have a login, please contact our Client Team on 01942 271 746 for further information.

 

Our portal contains copies of EIS 3 certificates for investments made through all of our EIS Funds.

 

Unfortunately, there are occasions where an EIS qualifying investment fails. If that happens, you may be entitled to claim loss relief against Income Tax or Capital Gains Tax. We have produced a PDF guide that you can download here: Guide to loss relief.

Important notice

The products and services shown on this website place capital at risk. Investors may receive less in returns than they have invested. Investments may not allow for capital to be withdrawn on demand. If an investment provides tax relief then this relief is subject to change and is dependant on personal circumstances. Any reference to past performance or forecasted performance is not a reliable indicator of future performance.

Seneca Partners recommends that any investor seeks specialised financial and/or tax advice before investing. Seneca Partners does not provide advice and the information on this website, including but not limited to news, should not be construed as such.

Please confirm that you understand this warning and wish to proceed.

Application Form Request – Seneca EIS Portfolio Fund


EIS Portfolio Fund

Risk summary

(Estimated reading time: 2 minutes)

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

What are the key risks?

  1. You could lose all the money you invest
    • If the business you invest in fails, you are likely to lose 100% of the money you invested. Most start-up businesses fail.
    • Advertised rates of return aren’t guaranteed. This is not a savings account. If the business doesn’t pay you back as agreed, you could earn less money than expected or nothing at all. In addition, if the tenant of the property being financed doesn’t pay the rent due as agreed or vacates the premises, you could earn less money than expected. A higher advertised rate of return means a higher risk of losing your money.
  2. You are unlikely to be protected if something goes wrong
    • Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker at https://www.fscs.org.uk/check/investment-protection-checker/.
    • Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection at https://www.financial-ombudsman.org.uk/consumers.
  3. You won’t get your money back quickly
    • This type of business could face cash-flow problems that delay payments to investors. It could also fail altogether and be unable to repay any of the money owed to you.
    • Even if the business you invest in is successful, it may take several years to get your money back. You are unlikely to be able to sell your investment early.
    • Even if you are able to sell your investment early, you may have to pay exit fees or additional charges.
    • The most likely way to get your money back is if the business is bought by another business or is wound
      up following the sale of the underlying property. These events are not common.
    • If you are investing in a start-up business, you should not expect to get your money back through dividends. Start-up businesses rarely pay these. This investment aims to make quarterly repayments that comprise both a partial repayment of capital and interest, although this is not guaranteed. It could take over 14 years to receive back an amount equal to the amount you invested.
  4. This is a complex investment
    • This makes it difficult to predict how risky the investment is, but it will most likely be high.
    • You may wish to get financial advice before deciding to invest.
  5. Don’t put all your eggs in one basket
    • Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
    • A good rule of thumb is not to invest more than 10% of your money in high-risk investments. (See https://www.fca.org.uk/investsmart/5-questions-ask-you-invest).

If you are interested in learning more about how to protect yourself, visit the FCA’s website at www.fca.org.uk/investsmart

Application Form Request – Seneca IHT Service


Application Form Request – Seneca AIM EIS Fund


Application Form Request – Seneca IHT Service


Application Form Request – Seneca AIM EIS Fund


Application Form Request – Seneca EIS Portfolio Fund


Risk summary

(Estimated reading time: 2 minutes)

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

What are the key risks?

  1. You could lose all the money you invest
    • If the business you invest in fails, you are likely to lose 100% of the money you invested.
    • Many of the loans ultimately financed by your investment are made to borrowers who can’t borrow money from traditional lenders such as banks. These borrowers have a higher risk of not paying back their loan.
    • Advertised rates of return aren’t guaranteed. If a borrower doesn’t pay back their loan as agreed, you could earn less money than expected. A higher advertised rate of return means a higher risk of losing your money.
  2. You are unlikely to be protected if something goes wrong
    • Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker at https://www.fscs.org.uk/check/investment-protection-checker/.
    • Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection at https://www.financial-ombudsman.org.uk/consumers.
  3. You won’t get your money back quickly
    • Some of the loans financed by your investment will last for several years. You may need to wait for your money to be returned even if the borrower repays on time.
    • Some Managers may give you the opportunity to sell your investment early through a ‘secondary market’, but there is no guarantee you will be able to find someone willing to buy.
    • Even if your agreement is advertised as affording early access to your money, you will only get your money early if someone else wants to buy your shares or the company in which you are invested has sufficient available capital to buy them from you. If no one wants to buy, it could
      take longer to get your money back.
    • If you are investing for growth, you should not expect to get your money back through dividends as the Service is not designed to pay dividends to investors seeking growth. If you are investing for income, it will take at least 25 years to get your money back purely through dividends.
  4. Don’t put all your eggs in one basket
    • Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
    • A good rule of thumb is not to invest more than 10% of your money in high-risk investments. (See https://www.fca.org.uk/investsmart/5-questions-ask-you-invest).
  5. The value of your investment can be reduced
    • The percentage of the business that you own will decrease if the business issues more shares. This could mean that the value of your investment reduces, depending on the basis on which these new shares are issued.
    • If these new shares have additional rights that your shares don’t have, such as the right to receive a fixed dividend, this could further reduce your chances of getting a return on your investment.

If you are interested in learning more about how to protect yourself, visit the FCA’s website at www.fca.org.uk/investsmart

Risk summary

(Estimated reading time: 2 minutes)

Due to the potential for losses, the Financial Conduct Authority (“FCA”) considers this investment to be high risk.

What are the key risks?

  1. You could lose all the money you invest
    • If a business you invest in fails, you are likely to lose 100% of the money you invested in that business. Most start-up businesses fail. Please see page 14 of the Information Memorandum for an overview of the types of businesses this fund invests in.
  2. You are unlikely to be protected if something goes wrong
    • Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker at https://www.fscs.org.uk/check/investment-protection-checker/.
    • Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection at https://www.financial-ombudsman.org.uk/consumers.
  3. You won’t get your money back quickly
    • Even if the business you invest in is successful, it may take several years to get your money back. You are unlikely to be able to sell your investment early.
    • The most likely way to get your money back is if the business is bought by another business or your shares are sold on the Alternative Investment Market. The latter can only occur if there is a willing buyer.
    • If you are investing in a start-up or EIS qualifying business, you should not expect to get your money back through dividends. Such businesses rarely pay these.
  4. Don’t put all your eggs in one basket
    • Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
    • A good rule of thumb is not to invest more than 10% of your money in high-risk investments. (See https://www.fca.org.uk/investsmart/5-questions-ask-you-invest).
  5. The value of your investment can be reduced
    • The percentage of the business that you own will decrease if the business issues more shares. This could mean that the value of your investment reduces, depending on how much the business grows. Most start-up businesses issue multiple rounds of shares.
    • These new shares could have additional rights that your shares don’t have, such as the right to receive a fixed dividend, which could further reduce your chances of getting a return on your investment.

If you are interested in learning more about how to protect yourself, visit the FCA’s website at www.fca.org.uk/investsmart

Risk summary

(Estimated reading time: 2 minutes)

Due to the potential for losses, the Financial Conduct Authority (“FCA”) considers this investment to be high risk.

What are the key risks?

  1. You could lose all the money you invest
    • If a business you invest in fails, you are likely to lose 100% of the money you invested in that business. Most start-up businesses fail. Please see page 14 of the Information Memorandum for an overview of the types of businesses this fund invests in.
  2. You are unlikely to be protected if something goes wrong
    • Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker at https://www.fscs.org.uk/check/investment-protection-checker/.
    • Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection at https://www.financial-ombudsman.org.uk/consumers.
  3. You won’t get your money back quickly
    • Even if the business you invest in is successful, it may take several years to get your money back. You are unlikely to be able to sell your investment early.
    • For companies whose shares are not listed on any exchange (‘unquoted’ or ‘private’ companies), the most likely way to get your money back is if the business is bought by another business or lists its shares on an exchange such as the London Stock Exchange. These events are not common.
    • For companies whose shares are listed on an exchange (such as the AQSE or AIM), the most likely way to get your money back is if the business is bought by another business or your shares are sold on that exchange. The latter can only occur if there is a willing buyer.
    • If you are investing in a start-up or EIS qualifying business, you should not expect to get your money back through dividends. Such businesses rarely pay these.
  4. Don’t put all your eggs in one basket
    • Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
    • A good rule of thumb is not to invest more than 10% of your money in high-risk investments. (See https://www.fca.org.uk/investsmart/5-questions-ask-you-invest).
  5. The value of your investment can be reduced
    • The percentage of the business that you own will decrease if the business issues more shares. This could mean that the value of your investment reduces, depending on how much the business grows. Most start-up businesses issue multiple rounds of shares.
    • These new shares could have additional rights that your shares don’t have, such as the right to receive a fixed dividend, which could further reduce your chances of getting a return on your investment.

If you are interested in learning more about how to protect yourself, visit the FCA’s website at www.fca.org.uk/investsmart