Kuber brings Guinness and Seneca to EIS platform
EIS platform Kuber Ventures has announced two new asset-backed EIS funds, Guinness EIS and Seneca Managed Storage EIS, have signed up to its platform.
The firm writes that the addition of the funds has enabled Kuber to build two distinct asset backed portfolios, one using media based investments and one non-media - with four investment managers in each portfolio. This will enable advisers to choose either or mix and match as required.
Specifically, Guinness emphasises the preservation of capital for investors by focusing on investment into asset-backed companies. These span a number of sectors, and can be catagorised as having asset-backing through property and land, high value stock, equipment and long term contracts. Guinness Asset Management successfully exited three EIS investee companies earlier this year, and its approach to targeting EIS investments where investment risk can be mitigated through the underlying assets has been highly successful in recent years, the firm says.
Seneca Managed Storage EIS is specialist vehicle for investments in the managed storage sector. Seneca will be working alongside their Operating Partner, SureStore, whose management team has identified the opportunity to acquire a number of freehold and long leasehold storage facilities to further expand the estate of storage assets that they manage – delivering a return by building and then exiting profitable managed storage facilities.
The announcement diversifies the investment opportunities available to investors on the Kuber Ventures platform. Kuber writes that this is significant within the context of recent changes in legislation, removing the ability to invest in renewable energy production within an EIS investment structure. The firm argues that this has reduced the market capacity of investible, low risk, opportunities by an estimated GBP500 million for the year 2016/17.
As a result, it is more critical than ever for investors in the EIS space to have the ability to create a diversified portfolio of investments, in order to increase risk-adjusted returns and minimize short term downside.
The addition of Guinness EIS and Seneca Managed Storage EIS funds is set to increase the already extensive opportunity set present on the Kuber Ventures platform. The announcement brings the total number of tax efficient funds available on the Kuber platform to 29, comprised of 15 EIS, 7 SEIS, 2 Hybrid and 5 BPR.
Dermot Campbell, CEO at Kuber Ventures, says: “The addition of these new EIS funds demonstrates the growth momentum of the Kuber Ventures platform.
“Both Guinness and Seneca have experienced, established, teams with strong track records of aligning their interests with investors. At a time when diversification is becoming non-optional for EIS investors, we are very pleased to be increasing the investment opportunities available to investors.”
Shane Gallwey, Head of the Guinness EIS Team says: “We are very pleased to build on our ongoing partnership with the Kuber Ventures platform. Having made over 50 EIS investments since 2011, we look forward to continuing our success in collaboration with Kuber. We have a strong pipeline of companies into which we intend to make investments in the current tax year, and we are pleased to offer the opportunity to invest in these to Kuber clients”.
Peter Steele, Head of Sales Operations at Seneca Partners says: “We have identified a highly attractive investment opportunity in the managed storage sector, working alongside the management team at SureStore who we know well. We believe that the underlying fundamentals of the managed storage sector combined with the inherent asset backing of the storage sites has significant appeal. We are looking forward to expanding our investor base via our partnership with Kuber Ventures”.