Why Invest
Positives
- Strategy: To fund fast-growth companies in data, digital, education and healthcare, which have existing products, and support them in scaling up.
Issues
- Track record: No exits to date from the current set-up, but the unrealised figures show some promise. Nexus Group has had exits from earlier investments.
The Investment Manager
Positives
- Team: The team has a broad experience in corporate finance, tax and accounting, as well as investment. The Nexus Group also manages a £2.3bn healthcare REIT.
Issues
- Small team: The team is small, and is dependent on a couple of key people, although it is part of the much larger Nexus Group.
Nuts & Bolts
- Duration: The fund is expected to have a lifespan of up to eight years, with closings as required.
- Diversification: The manager expects to provide each investor with 8 to 10 EIS investments, although that range may be exceeded.
- Valuation: Reviewed twice a year, with updates on progress being sent more frequently.
Specific Issues
- Fees: A mixture of direct fees and those charged to the investee companies.
- Performance fee: Charged on a portfolio basis at 20% for returns over £1.
Risks
- Target returns: The target return is 2.5x capital, which suggests a high-risk investment strategy.
- Companies: Supplying risk capital to early-stage technology companies at the start of commercialisation. There will be a spread of company returns, as the successful investments will do very well, but those that fail may do so completely.