Bramdean Asset Management llp
Bramdean Investors (BI)
BI offers investors the opportunity to invest in a portfolio of private equity deals. This can offer diversity and enhanced returns compared to a traditional investment approach.
BI is establishing a network of HNWI and family offices that will participate in small private equity deals. They will be offered equity and debt in those deals. Investments will be held through Bramdean Nominees.
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Some of the investments offered to network members may be eligible for tax relief under the Enterprise Investment Scheme (EIS). Under the scheme, UK taxpayers are able to reclaim 30% of their investment against tax paid or due to be paid. If held for three years or more, this benefit accrues to the investor permanently. In addition, if the investment is sold after three years at a profit, no capital gains tax will be payable. If the investment fails, the investor will be able to offset the net investment against capital gains tax or income tax
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Bramdean aims to achieve an exit for the BI network members from each investment in between 3 and 5 years. Timing will depend on the economic environment and the company’s performance. Most exits will be achieved through a trade sale or a sale to another private equity firm. Some businesses may opt for a stock market listing.
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Invest in a portfolio of deals.
BI Investment Process
01
BI will use its networks (individuals, accountancy firms and legal firms) to identify possible deals. Investee companies may be looking for growth capital or funding for an acquisition or a management buy-out/in.
Identify Potential Deals
02
When a potential deal has been identified, BI will undertake extensive due diligence.
Due Diligence
03
If the investment team believes that the deal is attractive, an investment proposal will be presented to the Investment Committee. The decision of the Investment Committee must be unanimous for an investment to be shown to the network.
Investment Proposal
04
If BI believes that the investment will qualify for EIS relief, it will apply to HMRC for advance assurance.
Enterprise Investment Scheme (EIS)
Relief
05
Once the investment has been approved, an Investment Memorandum will be written and sent to network members.
Investment Memorandum
06
On average, the network will have twenty-eight days to decide if they wish to make an investment. Units will be £10,000 each.
Investment Period
At the end of the investment period, the investment will be made.
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Deal Close
If the investment qualifies for EIS relief, BI will apply to HMRC for EIS 3 forms for each network members (they must be UK taxpayers in order to qualify)
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EIS 3 Forms
BI will be responsible for monitoring the investment on behalf of the network and will report quarterly to the network.
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Monitoring
The BI Portfolio Service
For those who do not wish to construct their own portfolios, You will be able to delegate this to BI by signing up for the BI Portfolio Service. The network member’s objectives will be agreed at the outset and BI will then be responsible for managing the portfolio of investments. The minimum investment for the service will be £100,000.