News_Jan_2010_Option_Layout 1 05/02/2010 17:08 Page 1 Issue 6: January 2010 www.edge.uk.com EDGE LINES UP FOR THE NEW YEAR WITH PREMIER LEAGUE IHT PRODUCT DGE Investment Management has payments due to the club from TV and could be achieved by most savings accounts. E launched a new inheritance tax service sponsorship deals. Edge says it believes in the product so much based upon factoring transfers of football Investments in ESM Factoring will qualify for that it will make the following commitments: players between Premier League and “business property relief” after only two years • if the amount invested has not been preserved Championship clubs. rather than the customary seven years required in full over the first two years, ie: all costs haven’t UK taxpayers paid £3.8 billion in inheritance tax to shelter assets from inheritance tax. been earned back, Edge Investment in 2008 with HM Revenue & Customs able to In addition, EITS offers investors the flexibility to Management will contribute an amount up to claim 40% of an estate above the £325,000 top up or reduce their investment, uniquely without 3% of the capital value. threshold. The Edge Inheritance Tax Service having to start the clock again for relief from (EITS) offers investors the opportunity to reduce • for the third year and each subsequent year for inheritance tax. Minimum investment is £50,000, their inheritance tax liability by investing in ESM as long as the investment is held, if an investor and then in sums of £10,000 thereafter. Factoring, a business which will factor high does not earn at least 3% per annum on the value football transfer fees between Premier EITS is targeting a minimum 3% annual return full amount invested, Edge Investment League and Championship football clubs. to investors, which in the current low interest Management will contribute an amount up to 3% per annum of the capital value of the Football clubs rarely receive the full amount of rate environment, is significantly higher than investment. transfer fees upfront, with many millions of pounds typically being paid in stages over one Edge Investment Management chairman or more years. ESM Factoring effectively buys Gordon Power said, “The problem with so many the right to receive the stage payments of the of the products offering to shelter assets from transfer fee and takes on the obligations of IHT is that they are inflexible, expensive and you invoicing and collecting those payments. Such have to wait seven years before they kick in. deals are made more attractive because under The great thing with the Edge Inheritance Tax Premier League and Football League rules, if a Service is that not only does it help you escape club defaults on a transfer fee, the leagues may inheritance tax, it is effectively underwritten by cover the debt by deducting it from the Gordon Power the Premier and Football Leagues.” Edge nominated as Edge appointed by UK’s Best VCT Provider DGE Investment Management has been Taste Music to seek Enominated for a top award by leading IFA publication Professional Advisor. Edge has been shortlisted in the Best VCT potential buyer Provider category alongside industry heavyweights Downing, Octopus and DGE has been retained to seek out a (2003) in addition to several other B sides and ProVen, the latter originally founded by Edge Epotential buyer on behalf of Taste live tracks (including the Hullabaloo double live Investment Management chairman Gordon Music. album and DVD 2002) plus some other Power. The Taste Music catalogue includes rights to copyrights by SHED 7 and other artists which Edge founder David Glick said, “When many of the early songs with which million- it controls for the world Edge launched, inevitably we were selling rock band Muse first made their name. Edge Group co-founder Richard Baskind says compared with some of the specialist entertainment industry operators. This Edge was appointed by Safta Jaffery of the marketing the rights to these choice copyrights will be high on his agenda when he travels to nomination is confirmation that we have Taste Media group who was the band's original grown beyond that limited grouping and our the Midem music industry convention in manager, label and mentor until 2005. peers within the industry are now the Cannes this month. “Muse are one of the most mainstream players. Whether we win this The Taste Music catalogue includes North important and biggest selling UK rock acts to award or not, it is very pleasing that our American music publishing rights to Muse's have emerged over the past decade,” he said, investment strategy is being vindicated by first three studio albums Showbiz (1999), “and we have already fielded a number of our own industry.” Origin of Symmetry (2001) and Absolution enquiries from interested parties.” News_Jan_2010_Option_Layout 1 05/02/2010 17:08 Page 2 Edge launches EIS with built-in performance Tried and trusted VCT launches ‘F’ share issue DGE Investment Management is initial investment in Edge Performance EIS plus HE successful Edge Performance VCT Eextending its successful “Edge additional income tax relief at a further 20% of Thas launched its latest ‘F’ Share issue with Performance” brand to the Enterprise the amount reinvested by the fund after three a target of raising £10m, of which at press- Investment Scheme (EIS) market with a years has elapsed, offering the potential for time Edge has already raised £6.4m. plan to raise up to £10m. significant enhancement of investors’ post-tax This latest share offer comes after a strong The EIS offers income tax, inheritance tax and return. result for the Edge Performance VCT’s original capital gains tax benefits and has a target life of The initial closing date of the fund is 31 March Ordinary share issue. six years. 2010, or, if sooner, the date on which aggregate In June 2009, Edge announced it had turned As with the successful Edge Performance VCT, subscriptions of £10 million have been received, the 60p per share original cost of investment of the new EIS will target investment in the with the intention that funds received by the its Ordinary shareholders into 85p in just three entertainment industry, including live events. As initial closing date will be invested in investee years, exceeding target by 66%. In terms of the biggest fund in the sector, Edge has companies before 6 April 2010. cash returned that made the Edge Performance established strong relationships with a number VCT Ordinary share class one of the Top 10 Edge Investment Management director Alasdair of promoters and venues, in particular SJM, a best-performing VCTs ever. George said, “The Edge Performance VCT has leading UK concert promoter, and AEG Live UK, Edge Investment Management director Alasdair become well-known as the leading independent whose parent company is Los Angeles based George said, “The Edge Performance VCT was investment fund in the entertainment business, Anschutz Entertainment Group Inc, one of the our first product and it is still the one for which we leading sports and entertainment promoters in so it makes sense to extend the brand to the EIS are best known. Low charges, managed risk and the world. market, giving investors the choice of two a strong commitment to the timely return of cash The EIS is structured so that under current complementary products sharing the same all mean we expect strong demand this year.” legislation, investors should receive upfront investment philosophy but with a choice of The Edge Performance VCT focuses on the income tax relief at 20% of the amount of their different tax reliefs.” entertainment industry including live events. Over the past four years investors in the Edge Performance VCT have backed 200 concerts by Pop maestro Carlsson selects Edge the likes of Kanye West and Backstreet Boys. to broker catalogue sale For its ‘F’ share issue, the VCT has set a target return of 130p in cash for every 70p invested NDREAS Carlsson, the songwriter Edge Media director Alasdair George said, (assuming income tax relief at 30%, equivalent Abehind scores of hits by the likes of the “Catalogues of this level of quality do not to a return of 160p per 100p invested). Backstreet Boys, N’Sync and, most become available every day so we are expecting recently, Katy Perry, has selected Edge significant interest in this sale.” Edge Legal signs girl group Media – Edge Group’s corporate finance Edge Media has a particular expertise in the sale Freefall to Mercury arm – to broker the sale of some of his of music publishing assets having masterminded choicest copyrights. the sale of a number of important catalogues DGE Legal’s team of entertainment Records containing Carlsson compositions have including Deston Songs, Big Life Music, Extreme Eindustry specialists had a busy fourth sold more than 100m copies worldwide. Music Music and Right Said Fred. quarter advising on a whole series of industry bible Billboard said of the writer, deals, including one of the most hotly- “Andreas Carlsson is to a song what Sweden is contested signings of 2009, Mercury to Pop music. Quite simply, the world…” Records deal with new girl group Freefall. The 258 copyrights in the Carlsson catalogue Edge represented the three-piece in its sale include: negotiations with Mercury and Steve • I Want It That Way, made famous by N’Sync Morton’s production company Be-Union. and named by Rolling Stone as one of the 10 Edge Legal director Richard Baskind said, best pop songs of all time; “Freefall are a very exciting act and it is a • That’s The Way It Is, now a signature tune for pleasure to be a part of what will be one of Celine Dion; the most eagerly awaited projects of 2010.