New fund will be co-invested alongside the regional Midlands Engine Investment Fund
26 April 2018 – Birmingham, UK — Midven, a leading Birmingham-based venture capital firm, is pleased to announce the launch of the Greater Birmingham EIS Fund (GB EIS), which will focus on deploying Enterprise Investment Scheme (EIS) qualifying monies alongside the recently secured £35m Midlands Engine Investment Fund (MEIF) from the British Business Bank.
Midven has an enviable reputation as a leading early-stage investor with a track record of creating value across its invested portfolio within the West Midlands. Not only has Midven delivered an array of profitable exits, but has created in the region more than 30 portfolio millionaires where cash realisations for entrepreneurs have been greater than £1m.
Prior to the launch of the new EIS fund, Midven has exclusively managed institutional and public funds. However, due to the overwhelming opportunities that exists in the region and demand from local investors, Midven is making available a restricted capacity tax-efficient fund. This fund will have the benefit of investing into ventures that qualify for the Treasury’s highly-advantageous EIS reliefs for private professional investors looking to benefit from the exponential growth of high-growth companies across Greater Birmingham. These benefits include 30% income tax relief, loss relief, tax free capital gains, Inheritance Tax (IHT) relief, and the deferment of existing Capital Gains Tax (CGT).
To learn more about the GB EIS Fund, please visit www.midven.co.uk/funds/birmingham-eis-fund/
Birmingham and the wider West Midlands region has seen phenomenal growth over recent years and continues to rapidly regenerate and evolve as a hub for innovative companies. Birmingham has topped the list for the highest number of new start-ups outside London for the fifth year in a row, and scored most favourable in the ‘fresh talent’ category, in which it was second only to London. Birmingham also performed well in terms of workforce catchment, future employment capacity and employer costs, all of which complement the Birmingham Big City Plan, the most extensive citywide development project ever undertaken in the UK.
These factors have enabled a wealth of exciting developments and infrastructure projects that are transforming the city’s landscape and helping to shape Birmingham into a global epicentre for business, culture and leisure.
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 more than 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 professional 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 Midlands Engine Investment Fund — co-investing in up to half of the same deals — but will target more established and lower-risk ventures that have the potential to 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.”
*Disclaimer: Past performance is no guarantee of future results. Early stage, higher risk investments carry the risk that some or all of the capital invested may be lost. Investment into Alternative investment funds are high-risk due to their illiquid nature and are subject to promotion restrictions as per the FCA handbook rules COBS 4.12R. Investment into the fund is suitable to professional investors as per COBS 4.12R and COBS 3.5.1R and prohibited to Retail clients as per COBS 3.4.1R. If you are in doubt of your categorisation or the suitability of the investment you should seek independent financial, tax and legal advice accordingly. Midven Limited does not provide investment, legal or tax advice. EIS qualification is determined by HMRC and investors should be aware that changes in legislation or in the qualifying investments threshold conditions may have a negative impact on investments.
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By looking to empower, build and grow businesses, Midven works in partnership with entrepreneurs to build strong and successful companies. With its hands-on approach, Midven prides itself on supporting businesses every step of the way; a value it has adhered to since its inception in 1990. Based in the heart of Birmingham, Midven looks to use its extensive experience and expertise by connecting businesses with the right resources, offering support whenever it is needed and investing time and effort to grow your business.
The Greater Birmingham EIS Fund (GB EIS) is an unapproved EIS fund, structured as an alternative investment fund, with a geographically focused strategy targeting EIS qualifying established businesses seeking development and growth capital.
Additional information on Midven’s GB EIS Fund is available at www.midven.co.uk/funds/birmingham-eis-fund/.
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