Tax Relieved Investment Opportunity – 2020 BVP EII Fund

With the 2020 EIIS season about to get off the ground, we thought it might be timely to put some of our thoughts around EIIS out there with the aim of assisting those considering an investment. First it is worth saying that EIIS has been hugely successful in recent years in terms of funds raised and successful outcomes for investors.  Possibly due to lessons learnt, EIIS has also surpassed its predecessor scheme (BES) in terms of the level of professionalism brought to bear by both the advisers and companies who have become involved.

For most investors, and certainly for those motivated by the tax break, the fund route is preferable to an individual company, simply because of the reduced risk associated with the diversified portfolio. To this end we will be looking at the BVP EIIS offering again this year.

BVP Investments Limited

BVP Investments Limited t/a Business Venture Partners (“BVP”) is an EII fund manager based in Dublin. BVP is authorised under the Investment Intermediaries Act, 1995 and regulated by the Central Bank of Ireland. Since 2007, BVP has proven experience in selecting & managing high quality investment opportunities on behalf of its investors. BVP has invested in over 34 qualifying companies to date and currently has €35 million assets under management.

The Fund

An application has been made to the Revenue Commissioners for the approval of the 2020 BVP EII Fund (“the Fund”) under the Employment and Investment Incentive (“EII”) scheme. EII is a tax relief incentive scheme which enables investors to deduct the cost of their qualifying investment from their total income for income tax purposes resulting in a return of 40% before capital appreciation.

Regulatory Status

• BVP Investments Ltd is approved under Section 10 of the Investment Intermediaries Act 1995.
• The fund Information Memorandum is approved by the Department of Business, Enterprise and Innovation.
• The fund is approved by the Revenue Commissioners in accordance with Part 16of the Taxes Consolidation Act 1997.

Key Attractions of 2020 EIIS Fund

• BVP Investments Ltd is approved under Section 10 of the Investment Intermediaries Act 1995.
• The fund Information Memorandum is approved by the Department of Business ,Enterprise and Innovation.
• The fund is approved by the Revenue Commissioners in accordance with Part 16of the Taxes Consolidation Act 1997.

Key Risks of 2020 EIIS Fund

• Medium to long term investment, no early exit mechanism. The typical investment period is between four and seven
• Investors are exposed to the performance of the companies in which the fund will invest and may lose some/all of the capital
• There is no guarantee that the Fund will achieve its investment
• Covid-19 could adversely affect the performance of Investee Companies

A more detailed list of risks are set out in the Information Memorandum of the Fund and should be read carefully.

Investment Themes

The 2020 BVP EII Fund offers investors the opportunity to invest across a range of Irish companies operating in internationally traded services, renewables, clean tech and technology. Our core themes include:

Sustainability: Reduce environmental impact through ecologically beneficial energy, agriculture and other products and services.

Health & Wellness: Improve health outcomes by providing access to first-rate healthcare and building innovative products and services that promote healthy lifestyles.

Mobility: Enable sustainable services to improve the movement of goods and people.

Investment Strategy

BVP provides investors with an opportunity to invest in selected Qualifying Companies. Investors will benefit from the tax relief provisions of the EII Scheme as well as capital appreciation though the expected growth in the value of the investment.
BVP seeks to partner with Irish companies which are led by strong management teams with global ambitions. BVP invests in companies that seek to achieve measurable social & environmental impact and attractive financial returns.

2020 EIIS  Fund – Example Portfolio Companies

UrbanVolt: Provide corporate customers with LED lighting “as a service”. Their business model provides customers with attractive no-upfront expenditure solutions for factory and warehouse upgrades. They work alongside the world’s largest companies to reduce their carbon footprint and enable significant savings on lighting costs.

Impact Enable customer savings of up to 75% on lighting costs. Annual carbon sequestered of 5,771 acres of forests.

HealthBeacon: Provide global pharma companies and leading health care providers with innovative solutions to ensure patients adhere to their medication schedules. HealthBeacon’s smart bin for injection sharps monitors usage and provides customised reminders to help patients stay on track. HealthBeacon is an NHS supplier and is approved by the FDA. To date over 9,400 patients have had a HealthBeacon and over 400,000 injections have been tracked.

Impact: Benefiting the pharma companies, patient retention is also increased by 25-30% within 12 months.

UFODrive: Innovative electric vehicle rental company providing corporate and retail customers with a paperless, fast service   at European airports and premium city centre locations. The founders’ vision is “to help accelerate the world’s transition to sustainable mobility”. Launched in 2018 the business is growing rapidly and is already in 11 cities and 8 countries in Europe (including Dublin and prime locations in London).

Impact: Benefiting their customers in time savings queuing to rent cars, 750,000 litres of fuel and saving carbon by 1,822 tonnes to date.

BVP pursues investments where we can help mission-driven companies scale and drive impactful change whilst ultimately delivering a strong financial return to our investors. We aim to align with Ireland’s Sustainable Development Goals (SDGs).

Ireland SDGs reflect the values that underpin our investment process and are applicable to most of our investments.

Form more information on this EIIS Scheme – Call Harvest on 01 2375500 or email justask@harvestfinancial.ie

EII Schemes – FAQ

EII How Tax Relief Works

BVP is regulated by the Central Bank of Ireland and BVP’s EII Fund has applied for approval by the Revenue Commissioners.
Past performance is not a reliable guide to future performance. The value of your investment may go down as well as up. There is no guarantee that the Fund will meet its target objectives. All terms and conditions and a comprehensive list of risks attaching to this investment are set out in the Information Memorandum for the Fund which investors should read and fully understand prior to making a decision to invest.
BVP recommend that potential investors should seek professional tax advice before subscribing having regard to the risks involved, their own financial circumstances and their tax position.

This marketing information has been provided for discussion purposes only.  It is not advice, it is provided for general information purposes only and does not fully take into account your financial position, investment needs and objectives, attitude to risk, liquidity needs, capital security needs, capacity for loss, etc.  It should therefore not be relied upon to make investment decisions.  Prior to any formal investments taking place you will be provided with a detailed suitability letter taking into account all the above and outlining why the investment(s) are (not) suitable for you.

The particular tax treatment contained herein is based on Harvest Financial Services Limited’s understanding of current Revenue practice as at November 2020.  Please note that the tax treatment depends on the individual circumstances of each client and may be subject to change in the future.  You should take such independent tax advice as you deem appropriate.

Warning: If you invest in this product you may lose some or all of the money you invest.

Please note that the provision of this product or service does not require licensing, authorisation, or registration with the Central Bank of Ireland, and as a result, it is not covered by the Central Bank’s requirements designed to protect consumers or by a statutory compensation scheme.

Warning: The value of your investment may go down as well as up.

Warning: If you invest in this product you will not have any access to your money for the length of the investment.