Creative Content EIS Fund
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Calculus Creative Content EIS Fund Investing in UK companies developing and producing premium commercial content for film, television, virtual reality and digital media Courtesy of Endemol Shine Media adviser to the Fund In association with Calculus Creative Content EIS Fund Calculus Creative Content EIS Fund 1 IMPORTANT INFORMATION CONTENTS Calculus Creative Content EIS Fund Making the right investment decision is more information and no responsibility is accepted 04 Key Risks at a glance important than ever in the current climate, and by Calculus Capital in respect thereof. All we want you to feel comfortable about making information and illustrations in this document are an informed decision about whether or not to stated as at July 2020. 06 Features & Benefits invest with us. This document does not constitute, and may Fund closing dates: This document describes arrangements by not be used for the purposes of, an offer to or an which Investors who wish to make private equity invitation to treat to any person in any jurisdiction 09 Introduction investments in EIS Qualifying Companies may outside the United Kingdom or any person who Last Friday in October appoint Calculus Capital Limited (“Calculus is a citizen of the United States of America or Last Friday in January Capital”) to act as their common investment fund who is a resident in the United States of America 10 Why EIS? Last Friday in April manager and to manage the investments made for tax purposes (“US persons”). This document Last Friday in July on their behalf. These arrangements together and the information contained in it are not for constitute the Calculus Creative Content EIS publication or distribution to persons outside the 12 Investment Opportunity Fund (“Fund”). Calculus Capital is authorised United Kingdom. Target timeframe to full to act as an investment manager by the UK It is very important that you carefully read and deployment: Financial Conduct Authority (“FCA”). Our FCA 14 Investment Strategy fully understand this document and the risks registration number is 190854. involved with the arrangements described in this This document constitutes a financial promotion document so that you can decide whether they 12–15 months from 17 Investment Process relating to the Fund and is both issued and are right for you. The opportunity described in respective closing date approved by Calculus Capital which has taken all this document is NOT suitable for all. Key risks reasonable care to ensure that it is fair, clear and are explained on pages 4 and 5 and should 19 Exit Strategy Minimum companies in not misleading. Please note that the statements be carefully considered. You should seek your of opinion or belief contained in this document own independent advice and then rely on your each portfolio: regarding future events represent Calculus own independent assessment of the Fund; 20 Why Calculus/ Capital’s own assessment and interpretation nothing in this document constitutes tax, legal or 5 of information available to it at the date of investment advice. Stargrove/BFI? issue of this document. No representation is made that such statements are correct or that Minimum investment: the objectives of the Fund will be achieved. 23 Meet the Team If you have any questions, please get in touch Additionally, some information contained in this by telephone or send us an email: document has been obtained from published £10,000 sources prepared by other parties and no Calculus Capital Limited, 28 Timeline responsibility is assumed for the accuracy or 104 Park Street, London W1K 6NF Holding period: completeness of such information. Telephone: 020 7493 4940 Accordingly each prospective investor must 29 Fees & Charges Email: [email protected] Minimum 3 years for EIS tax determine for himself what reliance (if any) he should place on such statements and www.calculuscapital.com reliefs, 2 years for IHT relief. 30 FAQs Target exit per investee company 4–6 years, but 34 Definitions timings may vary. The BFI trade mark is the registered trade mark of the BFI. The BFI is a registered charity and is acting solely in furtherance of its charitable objectives. The BFI is not authorised to, and does not carry on, any Regulated 36 Directory Activities under FSMA. The BFI is not directly nor indirectly remunerated for its support to the Fund and the Manager. The BFI is not advising on investing in the Fund nor making any recommendation to do so. The BFI has no involvement in the selection of or management of any relevant investments. 2 Calculus Creative Content EIS Fund Calculus Creative Content EIS Fund 3 employees could have a material adverse • Where an Investor or an Investee Company KEY RISKS effect on the Investee Company’s ceases to maintain EIS status in relation to business. any individual investment, this could result in the loss of some or all of the available This Fund may not be suitable for all investors. market of the London Stock Exchange. To Taxation Risks reliefs in relation to that investment Potential investors are recommended to seek meet the EIS Qualifying criteria, companies (together with a possible charge to interest independent financial and tax advice before must meet a ‘risk to capital’ gateway • Rates of tax, tax benefits and allowances thereon). investing. Please note that Calculus Capital test and so by definition have a higher described in this Information Memorandum • Following the admission of an Investee is not able to provide you with advice about risk profile. Smaller companies generally are based on current legislation and HM Company to the main market of the London whether you should invest in this Fund. may have limited product lines, markets Revenue & Customs practice. These may Stock Exchange, (but not to trading on the or financial resources and may be more change from time to time and are not As with many investment products, there are AIM) or certain overseas stock markets, dependent on their management or key guaranteed. Calculus Capital does not risks associated with investing in this Fund. business relief for inheritance tax purposes individuals than larger companies. Although provide advice and potential investors We have tried to explain the material risks as will cease. the Fund and Calculus Capital may receive are recommended to seek specialist clearly as possible below. Please be aware conventional rights granted to private independent tax and financial advice before • The levels and bases of reliefs from that there may be risks not currently known to equity funds and managers in the legal investing. The Fund has been designed with taxation may change or such reliefs may be us, or which we currently consider immaterial, investment documents it negotiates with UK–resident taxpayers in mind. If you are withdrawn. which may also have an adverse effect on Investee Companies in connection with the not resident or ordinarily resident in the UK investments in the Fund. • The tax reliefs referred to in this document for tax purposes, it may not be appropriate Fund’s investments, as a minority investor it are those currently available and their value or advantageous for you to invest in the will not be in a position to fully protect the depends on the individual circumstances of Fund. Applications will not be accepted Portfolio Risks interests of Investors in the Fund. Investors. from US persons. • Investors may not receive back the full • The past performance of investments made • Where an exit is facilitated through a share Whilst it is the intention of Calculus Capital amount that they have invested in the by funds managed by Calculus Capital • buyback by the Investee Company, this may to invest in companies qualifying under Fund. The value of each investment made is not a reliable indicator of the future be treated as a taxable income distribution EIS legislation, Calculus Capital cannot by the Fund may fall, and there is no performance of investments made by the unless certain criteria are met, including guarantee that all investments will qualify guarantee that an investment may not lose Fund. that the Investor is UK resident and has all of its value. for EIS Relief or IHT relief or, indeed, if they • Although Calculus Capital has been held the shares for a minimum five-year do initially, that they will continue to do so • Having regard to the Fund’s investment successful in identifying investments in the period. throughout the life of the investment. objectives and the tax reliefs available, past, it may be unable to find a sufficient investment in the Fund must be considered number of attractive opportunities to meet • Your obtaining income tax relief is subject Fund Allocation as a long-term investment. its investment objectives or fully invest the to your making the proper filings with HM Fund’s capital without significant delay. Revenue & Customs within the requisite • The Fund Manager will normally allocate • The success of the Fund will depend in part time periods and you may lose such relief if investments to Investors proportionate upon the skill and expertise of Calculus • The fact that shares in EIS Qualifying you do not make such filings. to their respective Contributions to the Capital and the continued availability of the Companies are, in general, not publicly Fund. As investments arise at different senior investment team which cannot be traded or freely marketable may mean that • The dates on which initial income tax relief, times, the Contributions of a later Investor guaranteed. proper information to determine the current CGT deferral relief and inheritance tax relief in the Fund may not be invested in all or value of investments will not be available. relating to investment in EIS Qualifying • Investments in shares in unquoted any of the Investee Companies in which Companies are available will depend on companies are not readily marketable • Many unquoted companies requiring an earlier Investor is invested; similarly an the dates on which the Fund makes its and the timing of any realisation cannot private equity investment are experiencing early Investor in the Fund may not have EIS Qualifying Investments.