Seneca Partners have published updated versions of the Information Memorandum and Application Form for their EIS Portfolio Service in time for the implementation of MiFID II and PRIIPS. These can be downloaded from these links:
At the same time, a few changes have been made to the charging structure to bring it in line with their Evolution EIS Approved Fund. These changes will only apply to investments received after 31st December 2017; existing subscriptions will be unaffected.
The revised fees are as follows:
2.5% + VAT for advised sales; or 5.0% + VAT for non-advised sales
Custodian’s Dealing Fees (Upon investment and exit)
0% (these will be paid by the Portfolio Manager)
Custodian’s Administration Fee
£275 + VAT to cover the first five years fee. £55 + VAT p.a. thereafter
Annual Management Fee
2% + VAT p.a. This is deferred and only charged once the investor has received back their Investment Amount
20% + VAT. This is only payable on the net proceeds received by an Investor that exceed their original Investment Amount after payment of the annual management charge. Where the Portfolio Manager is able to exit from an investee company before the fourth anniversary, a 30% + VAT Performance Fee will apply.
For a Subscription of £100,000 where no adviser fee is being facilitated, the Investment Amount (i.e. the figure after deduction of upfront fees) is £96,670.00.
Whilst Seneca have not changed their investment process nor their intentions to exit in the 4th to 5th year following investment, the potential impact of recent changes to EIS qualification rules may inherently result in slightly earlier stage investment. It would not be unexpected for younger companies to require a longer growth journey to the point of realisation of the investment. Seneca have therefore lengthened the exit timeframe indicated in the Information Memorandum as they believe this should help in managing investor expectations.
Please note that the new documents should be used for any investments received by Seneca after 31st December 2017. Regretably, Seneca will not be able to accept applications on any previous versions of these documents.
If you have any queries, please call the Client Relationship Team on 01942 271746 or email them at firstname.lastname@example.org