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

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

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