Strategy: Exposure to a portfolio of companies across a range of sectors the majority probably being based in the north of England.
Issues
Track record: Although the track record to date looks very promising, it still lacks depth.
The Investment Manager
Positives
Team: Diverse range of experience in team, with clear strategy and well-structured approach for post-investment support.
Issues
Rate of growth: Praetura have grown the team quickly in recent years.
Nuts & Bolts
Duration: The Fund is limited lifespan, with a closing on 19 December 2019, or when target reached if earlier.
Diversification: The manager expects to provide between six and eight investments.
Valuation: There will be no formal valuation, but information on the latest transaction prices will be supplied to investors.
Specific Fees
Fees: Combination of direct fees and company charges. Annual management fee mostly accrued and recovered from exits.
Performance fee: Charged at 20% on aggregate returns over 120% of gross subscription on a portfolio basis.
Risks
Target returns: The target return of 2x capital suggests a high-risk investment strategy.
Companies: Supplying risk capital to early-stage companies, most of which will rely on technology. There will be a spread of company returns as the successful ones will do very well, but those who fail may do so completely.
