EIS Funds

The EIS Fund is a managed portfolio service for individuals seeking a portfolio of tax-efficient investments.

Who is it for?

Our EIS Fund is suitable for private individuals seeking a diversified portfolio of growth capital investments which benefit from attractive EIS tax reliefs which boost investor returns and offer some downside protection.

How does it work?

MMC invests on behalf of EIS Fund investors in a portfolio of EIS-eligible companies. The EIS Fund is a pool of money managed by MMC on a discretionary basis that is structured as a series of individual accounts - EIS Fund subscriptions can be made at any time. Each investor has an account administered by our Nominee, Heartwood Wealth Management (interest accrues to the investor).

The minimum subscription to the EIS Fund is £25,000 which is typically invested in 3 to 5 Investee Companies within 12 to 18 months. These investments comprise both new deals and follow-on funding rounds for existing Investee Companies. We recommend that each of our investors re-subscribe to the EIS Fund in order to achieve further diversification.

What are the fees?

MMC charges an initial fee of 1%. The annual management fee is 2.5% payable quarterly in advance for the first two years and then accrued for years three and four (note: MMC caps management fees at 10%, i.e. four years). A performance fee of 20% is payable on gains made after the initial capital subscribed has been returned in full. This is applied on an aggregated basis to all subscriptions made within a single tax year.

Please note that all fees are subject to VAT where applicable.

Key aspects of the Enterprise Investment Scheme

• Minimum subscription - £25,000
• Low cost - we believe we are the lowest cost manager in the market, charging an initial fee of 1% and a management fee of 2.5% deducted quarterly for two years only and accured for a further two years with no management fees thereafter
• No hidden expenses - no expenses or costs other than stated management fees
• Simplicity - we take care of all EIS 3 certificates and other administrative tasks
• Tax benefits - EIS tax relief provides enhanced investor returns (through income tax relief and capital gains deferral) and downside protection
• Diversification - within 12 to 18 months your money will be pu to work in four to five EIS qualifying companies
• Transparency - investors receive a quarterly update, annual tax package and portfolio valuation (independently audited by KPMG)
• Access to portfolio companies - we organise an annual investor event at which our portfolio companies are represented
• Monthly 'At Home' sessions - we arrange monthly investor events held at our offices where we hear an update from one of our portfolio companies or market news from an interesting speaker