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Register now for 4 October 2022 at 3:00pm -

October Investor Forum: Shareholder value in ESG investing

The Praetura EIS Growth Fund is a discretionary portfolio service, which will provide a portfolio of investments in unquoted companies. The target return is an aggregate of 2x capital. Returns will be focused on capital gains, and investors are unlikely to receive any dividends. The fund has a limited lifespan.

Why invest

Positives

  • Strategy: Exposure to a portfolio of companies across a range of sectors, with around two thirds likely to be 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 has grown the team quickly in recent years.

 

Nuts & bolts

  • Duration: The fund is evergreen, with two closes a year, on 30 April and 31 October.
  • Diversification: The manager expects to provide between eight and ten 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. The annual management fee is 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 that fail may do so completely.
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If you'd like to be introduced to the team at Praetura Ventures Ltd, get in touch.

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