A £5m fund enabling investors to build a portfolio of investments with the potential for attractive returns and tax relief benefits, by focusing on the UKs buoyant second city and wider region.
Midven has been investing in Midlands SMEs for more than 25 years and is firmly positioned as the region’s leading early stage investor. We have built a reputation for supporting and growing high performing businesses from within the geographic heart of the UK; delivering a sector leading track for profitable exits whilst also creating over 30 portfolio millionaires in the Midlands where cash realisations for entrepreneurs have been greater than £1m. our team of experienced investment professionals has realised more than £40m for institutional investors.
We are regional experts and business growth specialists. Our demonstrable track record and highly-publicised new mandate for the Midlands Engine Investment Fund ensures that we are the first call for any SME across Greater Birmingham seeking equity investment.
The objective of GB EIS is to deliver strong returns within a defined timeframe (where possible) through investing into established SMEs with a clear route to exit. We aim to deliver a minimum of 2x capital growth on exit for investors (excluding tax advantages) over a 3-5-year window whilst yielding a full return of initial investment by year 4.
Please be advised the EIS benefits are dependent on individuals tax treatment and independent tax advice should be sought. EIS qualifying status can be amended or withdrawn dependent on individual investee company circumstances and/or legislative requirements. For further information please click here
At the heart of our investment strategy is a deep understanding that when working with SMEs, proximity to portfolio companies is key. This approach, paired with our extensive hands-on operational expertise, drives value creation and generates satisfactory returns for both entrepreneur and investor.
Our proven track record of delivering exits starts with our investment committee’s detailed analysis and due diligence of any given opportunity which includes an assessment of the exit strategy which must be achievable within a 3-5-year horizon before an investment can be made. Our role as the investment manager of GB EIS is predicated on creating the optimal outcome for our investors and we will therefore endeavour to identify early/partial exit opportunities wherever possible.
Birmingham’s rapid development in recent years has spurred the city’s recognition as an epicentre for business, culture, education and entertainment. Growth in the region has been accelerated through extensive, city-wide investment, which has created exciting opportunities for both established businesses and high-growth start-ups in the region.
The region is underserved for equity investment – the West Midlands contains 7.4% of the UK’s highest growth businesses, but only 2.6% of equity funds raised in the UK
Tony Stott, Managing Director of Midven, comments on the objective of the Fund:
“We have been at the heart of Birmingham’s entrepreneurial culture for over 25 years, helping to create multi-million pound local businesses from the ground up, and yet we have never before seen the level of opportunity for high growth ventures in the city and its surrounding areas as there exists today.
After the British Business Bank recently backed our investment strategy by appointing us to manage the Midlands Engine Investment Fund, we wanted to open the opportunity within the region to private investors who can utilise EIS reliefs; many of whom will know of our track record with local enterprise.
The Greater Birmingham EIS Fund will invest alongside the Midland Engine Investment Fund; co-investing in up to half of the same deals, but will target more established and lower risk ventures that can achieve a minimum of 2x capital return (excluding tax reliefs) within 3-5 years.
It’s an exciting time for both businesses and investors in the region as Birmingham has grown into a global centre for entrepreneurship across traditional industrial, technology and service/support sectors.”
We would be delighted to answer any queries you have and welcome you to register to receive a copy of our Investment Memorandum.
Important information: The information provided in relation to the Greater Birmingham EIS fund is for the main purpose of undertaking market research to establish potential interest in the fund and is for information purposes and is not a solicitation or an offer to invest in any fund, nor shall it or any part of it form the basis of or be relied on in connection with any contract. The prospective fund is likely to be an Alternative Investment Fund (AIF’s) and are classified as higher risk investments and are therefore not suitable for all types of investors and in particular are prohibited to retail investors and are subject to further participation restrictions contained within COBS 4.12 of the Financial Conduct Authority handbook. Furthermore, it should be noted that this market research is speculative and the fund launch is subject to regulatory approval as well as interest received and may not come to fruition if investor appetite so dictates or regulatory approval is declined.