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Midven launches a targeted EIS fund focused on high growth opportunities in Greater Birmingham

Tony Stott

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 furthermore has created more than 30 portfolio millionaires in the region where cash realisations for entrepreneurs have been greater than £1m.

Prior to this launch, Midven has exclusively managed institutional and public funds. However, as a result of the overwhelming opportunity 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 fast moving 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).

Find out more about the GB EIS Fund at www.midven.co.uk/funds/greaterbirmingham-eis-fund/

Why Birmingham?

Birmingham and the wider West Midlands region has seen phenomenal growth over recent years and is continuing to rapidly regenerate and evolve as a hub for high growth 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. The city also performed well in terms of workforce catchment, future employment capacity, and employer costs, alongside the Birmingham Big City Plan, which is 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 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 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.