WHAT WE DO
Amersham Investment Management Ltd (“Amersham”).
Amersham specialises principally in managing funds making investments qualifying for the Enterprise Investment Scheme (‘EIS’) and the Seed Enterprise Investment Scheme (‘SEIS’).
Amersham is authorised and regulated by the Financial Conduct Authority (FCA) under firm reference 507460 as an Investment Manager and additionally as an Alternative Investment Fund Manager within the meaning of the Alternative Investment Fund Managers Directive. We offer sector specific opportunities within what is our generalist approach (rather than a focus for example on pure Technology).
Sectors of interest include Consumer Brands, Media, Services & infrastructure, Mobile & Interactive Games and also Business Relief (non-EIS) opportunities for investors who are not seeking EIS relief.
Amersham is an FCA-authorised & regulated investment management firm specialising in start-up funding and early stage venture capital having raised over £32 million in assets (prior to disposals) investing over £7million in SEIS qualifying companies alongside over £23 million in EIS qualifying companies and over £2 million in BPR/IHT assets (September 2019).
Typically, we structure our offerings so that eligible investors are provided opportunities to invest in companies with which we have, where appropriate through adviser partnerships, appropriate sector expertise available to originate deals, agree investment terms, specify conditions and contracts, conduct due diligence through to investment and post-investment monitoring services, exit assessment and transaction negotiation.
Themselves entrepreneurs of record, Amersham’s directors have a keen understanding through first-hand experience of the requirements and challenges that face early-stage and growth stage businesses.
Structure and Eligibility
Products are structured as Alternative Investment Funds (‘AIF’). There is no fund vehicle as such – the AIF structure provides for an Investor Agreement between the Investor and Amersham which becomes binding once an application to invest has been accepted in accordance with the terms of an Information Memorandum.
Due to the illiquid and risky nature of investing in unquoted shares in private companies, eligible investors must either be advised by a professional intermediary or be able to satisfy suitability requirements.
Subscription monies (and subsequently other fund assets) are received and held independently by an FCA regulated Receiving Agent and Custodian firm.
Once invested in a portfolio company, Investors should be prepared to hold their investment(s) for 5-7 years. Investors’ shares are held in the Custodian’s nominee account at least for the 3- year S/EIS qualifying period.
For legal and tax purposes the Investor is the beneficial holder of their shares.
As the funds are Alternative Investment Funds, it is the fund itself that is the client of Amersham as Manager.
Investors receive twice-yearly reports on the status of their holdings and the progress of the investee companies, which in later stages of a fund will include valuation assessments once appropriate data is available.
Although investors are dealt with in common by Amersham, they may not be treated on anidentical basis.
Given the timing of investments each investor may not hold shares in each investee company and individual investments may represent different proportions of different investors’ portfolios as Funds will close over time in tranches.
Please note that investment in Amersham-managed funds carries substantial risks and any such investment should be regarded as being medium to long term in nature, investment in unquoted companies carries high risk wherein your capital is at risk and you may not get back the amount invested, if at all. Past performance is not a guide to future performance.
Origination, Investment Process and Monitoring
Amersham has a strong pipeline of qualifying eligible investee companies across our interested sectors, either generated internally or through sector specific specialists. Candidate companies moving through the Investment Process are assessed through due diligence procedures with pre-investment money valuations achieved through negotiation. The Investment Process has been developed over four years of working with EIS and SEIS opportunities and seeks to reduce investor risk whilst giving candidate companies freedom to run and develop their businesses in line with agreed conditions and plans, some of which may inevitably change over the course of the investment cycle.
Once invested, we may use qualified specialists appointed to the board (or as an observer) of each portfolio company to provide monitoring and where applicable mentoring services for the investee company.
Exit Strategy
Although assessing general exit prospects forms part of the investment decision at the outset, Amersham will seek exits normally anytime from after the minimum three year ‘holding period’ for S/EIS. Exits may be achieved by any one of a variety of routes, including:
| • Further fund-raising for an investee company may permit S/EIS investors to exit |
| • Acquisition of an investee company by a third party (for example a trade sale for a successful business) |
| • S/EIS shares may be offered to other shareholders in the investee company |
| • S/EIS shares may be offered to other investment funds or groups of angel investors |
Fees
Amersham’s objective is that eligible investors will benefit from S/EIS tax relief on as near to 100% of their subscription as possible.
Wherever possible management & due diligence fees are charged to the investee companies which is tax efficient for investors. Details of Fees charged to the portfolio companies and to investors are given in the appropriate section of the relevant Information Memorandum.
Returns generated by liquidity events will be distributed on a deal by deal basis.
