LONDON, October 19, 2016
Guinness Asset Management announces that its EIS offering is now open for investment. This is a discretionary managed service that will invest in asset backed companies to prioritise capital preservation.
Guinness EIS will invest in UK companies which are asset-backed by means of at least one of three criteria – they own property or land, they hold high value stock or equipment, or they have assets underpinned by contracted cashflows.
The investment team have a strong pipeline of investment opportunities, and are looking to make three to six investments before the end of the 2016/17 tax year. Investment opportunities include a crematorium, abattoir services, a children’s nursery, classic cars and a rehabilitation centre. The team aims to deliver returns in excess of £1.25 to investors (not including £0.30 EIS Income Tax Relief) net of all fees per £1.00 invested, in a four to five year timeframe. Fees are competitive, and charged to investee companies rather than investors, enabling investors to claim EIS Income Tax Relief on all of their subscription.
Guinness EIS will be managed by the existing team of Shane Gallwey, Edward Guinness, Dr Malcolm King, Chris Villiers, Hugo Vaux and Giles Robinette who bring extensive private equity experience with access to diversified asset backed deal flow and have raised and invested over £65 million from Guinness’ existing EIS offerings. They are supported by an Investment Committee that complements the team with the experience of Tim Guinness, Andrew Martin Smith, and Lord Flight, Chairman of the EIS Association.
Shane Gallwey, Fund Manager commented on Guinness EIS: “Our investment strategy of targeting companies where the business is underpinned by real assets works well with our investment ethos of capital preservation and steady growth. Guinness Asset Management is focused on creating solid investment returns, regardless of tax incentives available to investors. Guinness EIS will continue our strategy of backing diversified UK companies that provide good revenue visibility.”
Edward Guinness, Fund Manager said: “We are seeing many investors making EIS investments as a means of diversifying their portfolios, generating returns with low correlations to the equity markets and making investments that have attractive returns and tax benefits.”