Knowledge Intensive EIS Fund
The tax year 2023/2024 Par Knowledge Intensive EIS Fund II (“KI Fund”) is now closed for investment. We will be launching the 2024/2025 Par Knowledge Intensive EIS Fund (“KI Fund”) later on in the year.
Since 2008, Par Equity has built an impressive track record investing in high-growth businesses with cutting-edge technologies. Par Equity’s EIS funds invest in some of the most innovative technology companies in the North of the UK, fuelling smart management teams with the capital to disrupt sectors, push boundaries and solve some of the world’s most pressing problems.
One of the key drivers of Par Equity’s track record is its co-existence with the Par Investor Network, which combines to provide a powerful combination of financial and intellectual capital.
What is a Knowledge Intensive EIS Fund?
Knowledge-intensive EIS Funds invest in knowledge intensive companies (“KICs”), i.e., companies that are dedicating considerable resources to their research and development activities and taking innovative products and services to market.
Why might this be of interest to investors?
The Knowledge-Intensive Fund will mirror our existing investment strategy of our award-winning EIS Fund which focuses on B2B IP-rich companies across the north of the UK, but with the following additional benefits:
- The date for determining the investors’ tax relief is the date of the Fund’s close, i.e., (5th April 2024) rather than when the underlying investments are made. This improves tax planning and gives investors much greater certainty of claiming EIS relief against the current tax year or by carrying it back to the previous tax year, i.e., the 2022/2023 tax year for this Fund.
- There is a single EIS5 certificate produced once the Fund is fully deployed, rather than multiple EIS3 certificates for each underlying company.
- Investors are able to invest a maximum of £2m per tax year in qualifying knowledge-intensive companies, double the threshold for “normal” EIS investments.
Par Knowledge Intensive EIS Fund at a glance:
- Closing Dates: 5th April 2024, with application and funds received by 4th April 2024
- Sector Focus: B2B Technology - innovative, hard to replicate solutions with proven demand - covering 6 themes: enterprise software, healthcare & medical devices, industrials & space, energy & resources, food security and digital media & entertainment
- Minimum Subscription Amount: £25,000
- EIS Qualifying Percentage: Maximum 95% of Investor's subscription deployed in EIS Qualifying Companies
- Target Deployment Period: We aim to deploy funds within 12 months of the Closing Date. HMRC requires that at least 50% of the Fund is invested by the first anniversary of the Closing Date and at least 90% by the second anniversary.
- Target Number of Portfolio Companies: 8-12 companies per subscription
- Expected Holding Period: 6-8 years from the date of investment
Risk Warning
Please note, the fund is not an unregulated collective investment scheme (UCIS).
Investments in unquoted shares carries an above-average level of risk compared with quoted shares. An investor may not get back the amount invested and could lose all of the capital invested. The value of an investment may go down as well as up, but in any event such value can only be realised on a sale of that investment. These investments are highly illiquid and as such, there may not be a readily available market to sell them, and no market value exists. Furthermore, past performance is not necessarily a guide to future performance, as there are many contributory factors that can influence the value of shares in early-stage companies.
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