Stellar Asset Management is launching a Technology EIS fund which is open to investors from 1 June.
The new product follows the recent launch of the First Stellar Forestry fund and the Stellar Income fund launched earlier this year.
The new vehicle will be managed by Accretion Capital and will invest in technology stocks both from start-up and on the AIM market.
Accretion was set up in 2007 by ex-Close managers, Steve Bellamy and Michael Bourne, and focuses only on investment within the technology sector.
In previous years the firm has primarily focused on investment in start-up companies, but has now identified a growing number of later stage companies starved of capital for expansion due to the tightening of bank lending.
With this launch, Stellar chief executive Jonathan Gain hopes to capitalise on these opportunities within the tax efficient EIS wrapper.
"The changes to EIS and VCT legislation in the budget were minimal, however, the schemes were made to look more attractive by the government making pensions look horrible," says Gain.
"Although this is relatively early for a launch of an EIS product we believe IFAs will already be thinking about tax planning now and we hope to capture this raft of business."
The fund is looking to raise around £10m and will make its initial investments once it has raised £1.5m.
Minimum investment is £10,000 with an initial fee of 5.75%. A performance fee will kick in once the fund has returned 20%.
