UK Tech Fund V
Parkwalk's fifth annual EIS Fund, the Parkwalk UK Technology Fund V, opened to new investors in September 2013. We expect it to start investing in Q2 2014. Please click here to request the prospectus.
The Fund will invest in a portfolio of between five and eight EIS Qualifying Companies, offering UK-based HNWs and UHNWs the generous tax incentives provided by the EIS.
Meanwhile, for investors wishing to participate in our pipeline of deal-flow and make investments in this tax year, our evergreen Opportunities discretionary portfolio service (below), is open all year and has the same strategy, process and fee structure as Fund V. Please click here to request the prospectus.
The minimum subscription to either Fund is £50,000.
Parkwalk Opportunities EIS
The Parkwalk Opportunities EIS is an individual portfolio service that will typically invest in a portfolio of five or six EIS qualifying companies. It is open all year and is designed for investors who wish to invest outside the historic EIS tax year end. The bespoke nature of the service also allows it to be Parkwalk's vehicle for investors to make single company investments, either alongside our other Funds or in other companies that may fall outside of the normal Funds' remits.
Parkwalk manages nine EIS Funds.
The first four fully invested Funds are valued to BVCA guidelines and NAVs are published monthly on the Fund Management home page.
A portfolio company in the UK Tech Fund I in 2010 raised an additional £10m in 2013 at a 90% uplift to Parkwalk’s original investment level in early 2013 in a ‘pre-IPO’ round.
A second, private, investment in the same Fund raised an additional £25m in 2012 through an over-subscribed AIM flotation.
The UK Tech Fund II made an AIM listed investment in May 2011 which has subsequntly more than tripled.
The UK Tech Fund III made an AIM-listed investment in September 2012 that has already risen over 50%.
A number of other privately-held portfolio companies have had further follow on financings at substantial uplifts in valuation compared to Parkwalk’s initial investment level.
Parkwalk has invested in over twenty-five companies to September 2013, which have raised in excess of £130m of funding between them since 2010 and over 300 patents protect their technology and processes.
The Portfolio can be viewed here.
Various Parkwalk UK Technology Funds have been reviewed by both Martin Churchill's Tax Efficient Review, who classifies them as being "EIS Funds targeting growth Multi-Sector with track record" and Allenbridge's Tax Shelter Report, who commented that "The Fund offers an alternative, well considered investment strategy".
Please contact us for details.
Governance, Risk & Compliance
Governance, risk management & compliance are at the heart of Parkwalk's offerings. Potential investors are welcome to contact Parkwalk compliance to discuss operational due diligence or any other issues.
Innovation in general, and technology in particular, is often seen as a lead sector in any economic and stock market recovery.
It could be argued that now is a very salient time to invest in this sector after the economic problems of recent years.
British innovation, IP and R&D is perceived as a globally applicable asset, not necessarily priced in sterling, and therefore potentially able to generate returns however the economic climate develops.
Excellence in Innovation
The UK is globally perceived as a centre of excellence for R&D. In September 2013, the QS World University Rankings placed the Universities of Cambridge, UCL, Imperial College and Oxford in the world's top 6 Universities for R&D. 17 UK Universities grace the Top 100; put another way, about a third of British institutions sit among the world's top 1 per cent.
Our Funds seek to take advantage of this and the c.£4.2bn of publicly-funded research by investing in companies spun-out from such institutions.
The University of Cambridge has spun out 11 companies which now have a market capitalisation of over $1bn, and two have achieved valuations of over $10bn.
Through Parkwalk's pipeline of deal-flow, our Funds invest in some of the most exciting innovation being generated in the UK. These companies have been created from the outset with the optimal chance of commercial success.
We believe that there are three main criteria for successful investing in the EIS-compliant space:
Product Commerciality: Parkwalk invests in companies that develop products which increase efficiency and reduce costs by such a degree that the end consumer not only wants, but needs, the product.
Management Selection: Parkwalk portfolio companies are formed with experienced, relevant management with specific, in-depth knowledge of the relevant sector that the company operates within.
Financial Stability: Smaller companies often fail through lack of follow-on funding. EIS Funds by their very nature generally invest in one year, thereby precluding further investments over time. Parkwalk generally invests alongside other large VC Funds that have the ability to continue to support investee companies through to commercial success.
Parkwalk works alongside other VCs, completing due diligence and considering future funding requirements, planning future liquidity and establishing shareholders rights and agreements.
Parkwalk seeks HMRC pre-approval in advance of each investment, and works with investee companies for EIS provisions to be written into shareholders agreements where possible.
As an EIS Fund by its nature invests over a relatively short time-frame, Parkwalk believes that investing alongside other large VC Funds gives EIS investors some comfort that future funding rounds may at least be corner-stoned by other incumbent shareholders.
Deal Monitoring & Reporting
Parkwalk has regular interaction with management of investee companies, including business development and financial progress. This is reported back to investors through regular newsletters, interaction and meetings.
Parkwalk enhances investor value assisting investee companies plan a future exit strategy.
Post RDR Advisor Charges and Fees
If a financial adviser has made a personal recommendation in relation to your application, and you would like payment of the fee you have agreed with your adviser to be facilitated out of your investment, then the total initial charge will be increased to cover payment of the initial adviser fee which you have agreed and also any ongoing annual adviser fees which you might have agreed, for up to three years.