Online investment platform SyndicateRoom has launched an active EIS fund offering investors access to fast-growing UK scale-up businesses, Investment Week can reveal.
The Growth fund is designed to invest in select best-performing businesses that are included in the platform's growing portfolio. It will sit alongside Fund Twenty8, a passive fund for early-stage EIS opportunities.
Together, the two funds bring more choice for private investors searching for returns in a low-yield economic environment, by offering both an active and passive approach to companies at different stages of their growth cycle, the group said.
It added that its highly focused Growth fund allows investors to get access to later-stage EIS investments, typically reserved for institutional investors.
Like Fund Twenty8, the new product will target a return of 20%+ IRR including EIS tax relief.
The launch comes a week after Chancellor Philip Hammond announced plans for the government to offer more funding and support for UK knowledge-intensive scale-up businesses.
Gonçalo de Vasconcelos, CEO and co-founder of SyndicateRoom, said: "With a fast-growing group of more than 110 of the UK's most trailblazing companies, we are seeing huge potential from SyndicateRoom's portfolio.
"However, many of these companies tend to go to top-tier VCs for their follow-on funding rounds. It is fantastic to see them succeed, but it is also frustrating because private investors are being excluded from these exciting later-stage investment opportunities. SyndicateRoom's Growth fund has been designed to ensure that members do not miss out on these deals.
"The recent announcement by the Chancellor regarding EIS and VCT funds will result in an increase of EIS private capital being channelled to high-growth companies - which are exactly the kinds of companies that we welcome to the SyndicateRoom platform."
James Sore, CIO at SyndicateRoom, added: "Investors want choice - and we have a proven track record in providing that.
"By offering a choice of funds, catering to both passive and active investors, from early-stage to later-stage growth, we are offering further diversification for the private investor community."