Deepbridge Syndicate enables direct investment into Deepbridge’s portfolio companies, at no fee to the investor therefore ensuring 100% of their investment goes to the company and 100% of potential EIS tax relief can be achieved. To this end, fees will be charged to the Investee Company, and charged after the investment has been made.
a) Corporate advisory and arrangement costs
Deepbridge, as investment intermediary, will charge the Investee Companies a corporate advisory and arrangement fee of up to 5% of funds invested in that Investee Company.
b) Annual maintenance fee
An annual maintenance fee of 2% of the funds invested in an Investee Company will be paid to Deepbridge by each Investee Company on an annual basis. From this fee, the Investment Intermediary will pay certain operating costs of the Investee Company including the ongoing monitoring of each Investee Company.
c) Dealing and custody fees
The Investment Intermediary will charge each Investee Company a dealing fee of 0.65% on the sale and purchase of shares, and a Custody Administration fee of 0.50% p.a. for the provision of custody services.
d) Performance incentive fee
The Manager will receive an incentive fee of 20% of the amount of cumulative total cash returned to the Deepbridge EIS by the Investee Companies in excess of the amount of the funds invested in the Investee Companies. For clariﬁcation, once the Investor has received in cash the ﬁrst 120 pence per 100 pence invested (excluding any tax relief and representing a 20% hurdle on funds invested), any additional distributable cash will be paid as to 80% to the Investor and 20% to the Investment Intermediary. This is intended to align the interests of the Investment Intermediary with those of the Investors and the incentive fee will therefore only become payable if the total cash returned to Investors exceeds the amount of initial capital invested by 20% or more.
e) Investor marketing and other fees
The Investment Intermediary reserves the right to levy additional fees to the Investee Company to meet any costs relating to investor marketing, additional fundraising and administration, custody and dealing services provided.
f) Shares, options and warrants
In certain instances, the Investment Intermediary may also seek to take shares, options or warrants in the Investee Companies either in lieu of any of the above charges or fees in addition and in line with standard industry practice.
All fees, costs and expenses levied on the investee companies are stated excluding any VAT which will also be charged where applicable.
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