The Par EIS fund invests in early-stage technology companies, especially those related to deeptech. There is a regional focus on northern UK and companies should be showing meaningful traction before investment. The fund has been using the same strategy since 2012 and Par as a whole has built up a strong record of returning cash to investors through successful exits.

Why invest

Positives

• Strategy:  Exposure to a portfolio of technology companies across the north of the UK, co-investing with experienced Angels.

Issues

• Diversification:  While diversification has improved, and is in line with sector averages, it remains behind the best.

The investment manager

Positives

• Team: Diverse range of experience in team, with clear strategy and good support from its Angel network.

Issues

• Forthcoming merger: Par Equity is merging with Praetura. While this makes strategic sense, execution risk is present.

Nuts & bolts

• Duration: The fund is evergreen, with no formal closings, and investors simply participate in the deal flow after investment.
• Diversification: The manager aims to provide 8-12 equal investments for each investor; an increase since 2023, from 7-8 previously.
• Valuation: Updated quarterly following IPEV guidelines, and reviewed by committee.

Fees

• Fees: A combination of direct fees and company charges. Four years of annual fees are deducted upfront.
• Performance fee: Charged at 20% on aggregate returns over 120% of subscription.

Risks

• Target returns: The benchmark average IRR of 15% (roughly doubling the gross investment in five years) suggests a medium- to high-risk investment strategy.
• Companies: Supplying risk capital to early-stage technology companies at the start of commercialisation. There will be a spread of company returns, as the successful ones will do very well, but those that fail may do so completely.