Illustrative Investor Return scenarios:
Financial Performance
In addition to impact returns, the fund is seeking to generate attractive financial returns through portfolio performance and tax reliefs.
Each investor will typically be invested in six to twelve investee enterprises, offering a diversified portfolio across a range of social outcome areas.
Assumptions
- Net proceeds are inclusive of tax reliefs and after fees.
- Initial investor fee of 3 per cent (plus VAT) on investment amount, therefore tax relief available on 96.4 per cent of subscription amount.
- Returns model assumed 1:1 deployed between debt and equity and default on debt issues are written off in year four.
- Funds invested within 12 months of Subscription.
- Tax relief available at 30 per cent, with loss relief on losses in excess of tax relief received, based on 45 per cent additional rate tax.
- Assumed Investor is not benefitting from Capital Gains Tax deferral.
- Average interest of 4 per cent charged on debt product, payable to the Investor annually.
- 15 per cent performance fee on aggregate proceeds over 110p per 100p invested in the Fund.
Please note that the above return scenarios are for illustrative purposes only and actual returns may vary. The value of the tax reliefs will depend on an investor’s personal circumstances.
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