Deepbridge Syndicate enables direct investment into Deepbridge’s portfolio companies, at no fee to the investor at the point of investment, 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.
Please see Investor Agreement for full details.
a) Initial Corporate advisory and arrangement costs
Deepbridge (The Investment Adviser) will charge the Investee Companies a corporate advisory and arrangement fee of up to 5% of funds invested in that Investee Company.
b) Initial Investor marketing and other fees
The Investment Adviser reserves the right to levy additional fees to the Investee Company to meet any costs relating to investor marketing, valuation reporting, additional fundraising and administration, custody and dealing services, as well as those specific legal and compliance services provided not covered by the Annual Maintenance Charge. Such fees will be reported to the Investment Manager and investor on a regular basis.
c) Dealing fees
The Investment Adviser will charge each Investee Company a dealing fee of 0.65% on the purchase of Shares. With regard to the dealing fee on the purchase of shares, the Custodian shall receive fees for their respective services for share purchases, payable by the Investment Adviser, upon
presentation of invoice to the Investment Adviser, which is then recouped from the Investee Company..
d) Annual maintenance charge
An Annual Maintenance Charge of 2% of the funds invested in an Investee Company will be paid to the Investment Adviser by each Investee Company on an annual basis. From this fee, the Investment Adviser will pay certain operating costs of the Investee Company including the ongoing monitoring of each Investee Company
e) Annual custody fees
The Investment Adviser will charge each Investee Company an annual custody administration fee of 0.50% as a contribution towards the cost of provision of custody services. Any custody fees in excess of this amount will be borne by the Investment Adviser.
f) Performance incentive fee
The Investment Adviser will receive an incentive fee of 20% of the amount of cumulative total cash returned by each Investee Company in excess of the amount of the funds invested in the respective Investee Company subject to a hurdle rate of 20%, on absolute exit of the Investors shareholding in the Investee Company. For clarification, once the Investor has received in cash the first 120 pence per 100 pence invested (ignoring any tax relief
and representing a 20% Hurdle Rate on funds invested), any additional distributable cash will be paid as to 80% to the Investor and 20% to the Investment Adviser. This is intended to align the interests of the Investment Adviser with those of the Investors and the incentive fee will therefore
only become payable if the total cash returned to Investors, per Investee Company, exceeds the amount of initial capital invested by 20% or more.
f) Shares, options and warrants
In certain instances, the Investment Adviser 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 common industry practice.
All fees, costs and expenses levied on the investee companies are stated excluding any VAT which will also be charged where applicable.
It should further be noted, that where tax reliefs are available, they are only available on the actual amounts invested in the investee companies, and
therefore no tax relief is available for charges.
Whilst most charges are not levied on Investors at the Fund level, but on the Investee Companies the Fund invests in, the impact may be to reduce the net assets of the Investee Companies which could thereby affect the net returns to investors.
Need to know more?
For further information please do not hesitate to get in touch.