Costs/Management Charges/Performance Fees
NO FEES TO INVESTORS - 100% Rule
The Highgate Tech Fund 3 is an Investor Fee Free Fund. Investors are not charged any up front fees or annual fees whatsoever. This unique advantage allows Investors to realise 100% of the EIS tax advantages and to have 100% of their investment actually put to work earning returns. .
Highgate deploys a unique charging structure since the management team believes that their rewards should be in line with the successful delivery of results to Investors. In contrast to many EIS and similar funds, Investors receive their tax reliefs based on the full value of their investment, not after the deduction of costs and VAT, so 100% of their investment is earning returns.
Highgate do not charge management salaries or fees. The management return is achieved through participation in a performance fee aligned to investor returns. After the Investor has received an annualised return of 6% on their gross investment, the performance fee will be equivalent to 25% of Investor profits with the balance of 75% being distributed to Investors. .
Investee Company Service Charge
6.5% of the total investment made and an annual charge of 2.25% (exclusive of VAT and paid quarterly in arrears) will be invoiced to the investee company. These charges cover the costs of legal, due diligence, EIS applications and compliance filings of the investment process. Highgate will normally supply additional resource such as marketing, PR, financial accounting etc. as the individual company requires. Highgate reserves the right to charge Investee companies on commercial terms for services which are agreed to.
Introductory comissions to authorised intermediaries are available and they should contact the Fund Manager on 020 8780 0883 with their details and for confirmation of terms.
- Maximum Fund Size: £10m¹
- Minimum Individual Investment: £5,000
- Maximum Individual Investment: Unlimited²
- Closing: final closing date 5th April 2013³
- Life of Fund: 4 -5 years, extendible to 7 years