Oxford Gateway Fund No.3 (for web).pub - The Tax Shelter Report

Oxford Gateway
Fund No.3
An opportunity to invest in a growth portfolio
of UK emerging science and technology companies
An Enterprise Investment Scheme Portfolio Fund
Attractive Fundamentals:
EIS tax advantages
Potential for high returns
A proven process
An experienced team
Managed by
Oxford Capital Partners

An EIS Portfolio Fund
A tax efficient portfolio
Potential High Returns
A valuable asset class
Oxford Capital Partners (OCP) is an established
private equity investment manager focused on
investing in high growth science and technology
businesses. OCP manages the Oxford Gateway
Funds and has demonstrated superior investment
returns.
The Oxford Gateway Fund No. 3 is a discretionary
investment EIS portfolio fund which invests in
emerging science and technology businesses in the
UK. It offers serious investors an alternative asset
investment programme focused on an absolutereturn
strategy and provides access to wealth
creation in businesses with high growth potential.
Through a diversified portfolio of investments, the
Fund offers risk reduction and enhanced returns
with EIS tax advantages.
Returns from traditional asset classes (cash,
bonds, equities, properties) in the next five years
are forecast to be lower than those generated
over the past decade. Long-term investors are
increasingly recognising that venture capital can
provide attractive investment opportunities to
realise significant growth.
We believe that returns on private equity, in
particular on venture capital, will be significantly
higher than on conventional asset classes.
An allocation to private equity through a
subscription to an EIS fund can enhance overall
portfolio returns and reduce risk.
The Challenge of Asset Allocation
Asset Class Returns
% annual nominal returns
Past
1995-2004
Future**
2005-2010
Bonds: MSCI World¹ 5.7% 3-4%
Cash: GBP ave. 3mth LIBOR¹ 4.2% 4-5%
Equities: FTSE All Share¹ 8.1% 6-8%
Properties: UK 1 7.5 %* 4-7%
Hedge: CSFB/Tremont Hedge Fund Index¹ 10.9% 4-8%
Private Equity: Total UK 2 14.8% 10-30%
Sources: ¹Bloomberg, ²PwC/BVCA, *10 years to 2003, **Estimates
EIS Tax Advantages at a glance*
Risk reduction and enhanced returns
Income tax relief at 20%
Capital gains tax deferral
Tax free capital gains
Loss relief - tax relief up to 52%
Inheritance tax relief of 100%
The example on the right shows £10,000 invested
under the Enterprise Investment Scheme, which
returns double the invested capital to the investor. It
illustrates how this return can be enhanced through
the EIS tax advantages. The tax free return is 4 times
the effective cost as a result of the tax advantages.
£20,000
£10,000
£0
CGT
deferral
relief
Income tax
relief
Effective
cost to
investor
£4,000
£2,000
£4,000
Initial Investment
£4,000
£16,000
Return on Investment
CGT
deferred
payment
Tax free
return to
investor
*(conditions apply including minimum holding period,
please see the Information Memorandum for more details)

A Proven Process
A strong investment strategy
An Experienced Team
A broad set of skills
OCP uses rigorous processes for investing in early
stage and development businesses with high
growth potential and for constructing a
diversified portfolio.
Clear investment strategy
Sophisticated portfolio construction
Strong risk management
Professional team with relevant experience
Supported by leading specialist advisors
Active involvement with companies
Transparent and informative reporting
Track record of superior investment performance
Ted Mott - CEO, has 25 years experience in
technology businesses and investment
banking in the US, Europe and Asia. A
successful investor and entrepreneur, he
founded OCP in 1992. He is a Cambridge
University economist and an Insead MBA.
Robin Hill FCA - Finance Director, has over
30 years’ experience of managing and
advising businesses. He has been CEO and
CFO of high tech and services businesses in
the US and Europe.
David Mott - Investment Manager, has
several years’ experience of managing and
advising venture capital investments.
Previously at Result Ventures and PwC.
Chris Mallows FSI - Investor Advisor, trained
as a stockbroker with Cazenove and later
with SG Warburg. He is the former CEO of
Standard Chartered Securities.
Adrian Goodall -Investment Manager,
previously strategy director at THUS plc and
was in the top-rated telecoms teams at
Goldman Sachs and SBC Warburg.
Victor Christou PhD - Investment Manager,
has 15 years tech experience and was the
Royal Society Chemistry Entrepreneur of the
Year. Graduate of Stanford Business School.
Lucy Dighton -Investment Analyst, is a life
science graduate of Oxford University.
Previously gained technology experience
with Synaptics UK in Cambridge.
A Superior Track Record
Oxford Gateway Fund No. 1
Launched July 1999, data as at 5 April 2005
Total net return 172%
Distributed returns 2.3x
IRR 19%
Top 10% performance of UK 1999 funds (BVCA/PwC)
200%
150%
100%
50%
Total net return
(July 1999 to April 2005)
Oxford Gateway Fund No. 2
♦ £11.3m fund, launched December 2003
♦ 14 investments to date
♦ In 2005, two companies have already successfully
listed their shares.
0%
-50%
OGF1 FTSE 100 Tech Mark
Past performance is no guarantee of future performance
Returns calculated as a 5th April 2005 in accordance with International Private Equity
and Venture Capital Guidelines. All figures are net of fees.

Supported by Strong Advisers
Oxford Capital Partners
The OCP team is supported by scientific and
strategic advisory councils consisting of
experienced and distinguished advisers.
Members include:
Professor Colin Bain - Chemistry Adviser, Chair of
Chemistry Department of the University of
Durham.
Professor Richard Darton, FREng - Engineering
Sciences Adviser, Chemical Engineer and head of
the Department of Engineering Sciences of the
University of Oxford.
Patrick Ellis-Jones - Intellectual Property Adviser,
former Managing Partner of J A Kemp, patent
attorneys.
Robert Foster - Public Policy Adviser, former
deputy to the Government Chief Scientific
Adviser.
Angus Fraser - Business Strategy Adviser, former
Managing Director of Imperial College.
Professor Les Iversen, FRS - Life Sciences Adviser,
former VP of Neuroscience Research at Merck.
Dr Hubert Matthews - Communications Science
Adviser, Entrepreneur and technology adviser.
Professor Nigel Poole, OBE - Life Sciences
Adviser, Government adviser and expert on
environmental science policy, formerly with
Zenica.
George Robinson - Investment Strategy Adviser,
Co-founder of Sloane Robinson Investment
Management, a leading hedge fund.
Victor Seidel - Entrepreneurship Adviser, Centre
for Science & Entrepreneurship at the Saїd
Business School of Oxford.
Fund Name: Oxford Gateway Fund No. 3
Fund Manager: Oxford Capital Partners
Target size: £10,000,000+
Structure: Discretionary investment EIS portfolio
service
Investment Strategy: To invest in portfolio of
companies with:
♦ EIS tax advantages
♦ Science and technology focus
♦ Early and development stage
Fees: Initial Fee: 5%
Management fee: 2.5% p.a.
Performance fee: 20% of net return
Reporting: Regular portfolio updates and reports
Website: www.oxcp.com
To invest: please contact us for a full Information
Memorandum and application form.
Contact us
Oxford Capital Partners
201 Cumnor Hill
Oxford, OX2 9PJ
United Kingdom
T: +44 (0) 1865 860760
F: +44 (0) 1865 860761
E: investors@oxcp.com
W: www.oxcp.com
Oxford Capital Partners Limited is authorised and regulated in the United Kingdom by the Financial Services Authority
REGULATORY NOTICE
This brochure has been prepared and is communicated for the purposes of section 21 of the Financial Services and
Markets Act 2000 in the UK by Oxford Capital Partners Limited. Past performance may not necessarily be repeated and
is no guarantee or projection of future results. Unquoted investments may be illiquid and difficult to sell and it can be
difficult to obtain accurate information as to their worth or risk profile. The Oxford Gateway Fund No.1 and Oxford
Gateway Fund No.2 are no longer open to new investors and do not constitute collective investment schemes. Tax
assumptions are subject to statutory change and the value of tax reliefs will depend on an investor’s individual
circumstances. Any decision by an investor to offer to invest should be made only on the basis of each Fund’s
Information Memorandum. This document is provided to you for information purposes only and should not be used or
considered as an offer or a solicitation to sell or buy the securities mentioned in it. No recommendation is made,
positive or otherwise, regarding individual funds or securities mentioned in this document.
For more information please call 01865 860 760