EMVC Evergreen EIS Fund is a discretionary portfolio service that will give each investor exposure to four to six technology companies. The target return is £3 for each £1 invested. Returns will be focused on capital gains, and investors are unlikely to receive any dividends. The Fund, as the name indicates, is evergreen.
Each investment will be into a technology company. The target is for investors to receive shares in four to six companies. The focus means that there will be limited sector diversification, but each investment will be expected to perform independently of the others.
The target return of 3x invested capital over six to eight years suggests a higher-risk strategy.
Sourcing will take place through a combination of direct approaches and the infrastructure and network that EMVC has built up. Notably, this includes major corporates, some of which EMVC has co-invested with previously and from which it is now getting referrals.
EMVC looks to put in place an accelerator-type plan for each company, looking to determine the areas in which the investee company needs support. There is a particular push towards good financial controls and internationalisation of sales. EMVC hopes to take an ongoing role in providing follow-on funding for the companies that require it. Each investee company will have a director or board observer representing the Fund and with a regular flow of management information to EMVC.
The intention is that exits will come through trade sales or other normal exit routes, such as IPOs.