UK ENTERPRISE FUND

An opportunity to invest directly in the UK’s growth economy

 

 

When investing, the value of your investments, and the income you receive from them, can go down as well as up and you may not get back as much as you invested.

UK ENTERPRISE FUND

An opportunity to invest directly in the UK’s growth economy

 

Invest in fast-growing British businesses

We’ve teamed up with BGF, the UK's leading growth-stage investor to launch the UK Enterprise Fund and help power the growth of small and medium sized enterprises (SMEs).

The Fund is an opportunity to invest in innovative businesses which have been carefully selected from within the ‘growth economy’. These companies are spread across the country, operating in a wide range of sectors critical to achieving the UK's economic priorities. One thing they have in common is that on average their revenues have grown at twice the pace of UK GDP in recent years.

Investors in the Fund will gain exposure to a diversified portfolio of at least 20 privately-owned, commercially proven businesses.


 


Exclusive opportunity for clients 
 

591216789

We’re offering Professional Clients an exclusive opportunity to back disruptive companies that are revolutionising their industries.

The Fund held its first close in June 2021, and is expected to hold the second and final close in September 2021.

If you have at least £250,000 to invest and would like to invest in some of the country’s most exciting businesses, then please get in touch to find out more.

 

   Unique opportunity to build a portfolio of unlisted investments

 

New collaboration with BGF,  the UK’s leading growth investor

Unparalleled access to the growth capital asset class

 

 

Supporting female founders and board diversity

Backing the lifeblood of the UK’s Growth Economy

 

 

Addressing the funding challenges faced by UK entrepreneurs

Invest in fast-growing British businesses


We’ve teamed up with BGF, the UK's leading growth-stage investor to launch the UK Enterprise Fund and help power the growth of small and medium sized enterprises (SMEs).

The Fund is an opportunity to invest in innovative businesses which have been carefully selected from within the ‘growth economy’. These companies are spread across the country, operating in a wide range of sectors critical to achieving the UK's economic priorities. One thing they have in common is that on average their revenues have grown at twice the pace of UK GDP in recent years.

Investors in the Fund will gain exposure to a diversified portfolio of at least 20 privately-owned, commercially proven businesses.

 


Exclusive opportunity
for clients 

 

591216789


We’re offering Professional Clients an exclusive opportunity to back disruptive companies that are revolutionising their industries.

The target Fund size is £50m to £100m and it's expected to close to investors during April 2021.

If you have at least £250,000 to invest and would like to invest some of the country’s most exciting businesses, then please get in touch to find out more.

 

Unique opportunity to build a portfolio of unlisted investments

 

New collaboration with BGF,  the UK’s leading growth investor

 

Unparalleled access to the growth capital asset class

 

Supporting female founders and board diversity

 

Backing the lifeblood of the UK’s Growth Economy

 

Addressing the funding challenges faced by UK entrepreneurs

Investing with purpose

We believe business should be a force for good and this Fund aims to drive positive impact for society while delivering an attractive risk-adjusted return for investors.

We’re committed to providing growth capital regardless of gender or background. We also acknowledge that companies are often more successful when their founders bring different perspectives. To achieve this the Fund will look to provide support to help female entrepreneurs to overcome the barriers they face and encourage increased diversity of management teams and boards.

Initiatives include:

  • Proactively sourcing female-led investment opportunities
  • Recruiting leading female executives to improve diversity
  • Full transparency as Investing in Women Code members
  • Offering equity ‘investment-ready’ workshops

MORE ON HOW WE’RE SUPPORTING FEMALE ENTREPRENEURS

investment strategy

The Fund will seek to establish a new portfolio in 12 months, deploying two-thirds of its capital alongside BGF. The remaining third will be deployed as follow-on investments in Years 2-5 in line with BGF's long-term focus. Investments will comprise a mixture of shares and yielding loan notes.

 

DIVERSIFIED STRATEGY
 


Investing in businesses with revenues of typically £2.5m to £100m at various stages of development in multiple sectors across the UK.

 

RETURN POTENTIAL
 


Targeting a net internal rate of return in excess of 10% p.a. after fees, made up of expected annual yields, transaction income, dividends, exit proceeds, with upside for out-performance.

GUARANTEED EXIT
 


Average expected holding period of 5–7 years for individual assets. Guaranteed exit for investors in Year 10 for any unrealised investments.


Fund Timeline

The Fund held its first close in June 2021, and is expected to hold the second and final close in September 2021.

investment strategy

The Fund will seek to establish a new portfolio in 12 months, deploying two-thirds of its capital alongside BGF. The remaining third will be deployed as follow-on investments in Years 2-5 in line with BGF's long-term focus. Investments will comprise a mixture of shares and yielding loan notes.


DIVERSIFIED STRATEGY
 

Investing in businesses with revenues of typically £2.5m to £100m at various stages of development in multiple sectors across the UK.

RETURN POTENTIAL
 

Targeting a net internal rate of return in excess of 10% p.a. after fees, made up of expected annual yields, transaction income, dividends, exit proceeds, with upside for out-performance.

GUARANTEED EXIT
 

Average expected holding period of 5–7 years for individual assets. Guaranteed exit for investors in Year 10 for any unrealised investments.

 

FUND TIMELINE

The target Fund size is £50m to £100m and it's expected to close to investors during April 2021 after the capital raising period.

PROVIDING PATIENT CAPITAL
 

We believe the best way to support the sustainable growth of entrepreneurial businesses is to provide the capital they need through minority equity investments rather than controlling stakes – with follow-on capital available, giving founders time to realise their growth ambitions.

The Fund will also support growth and create value for investee companies through access to BGF’s ~6,000 strong Talent Network of entrepreneurs and executives with specialist skills, experience and connections.

INVESTING WITH PURPOSE
 

We believe business should be a force for good. BGF aims to drive a positive impact through society while delivering an attractive risk-adjusted return for investors.

We’re committed to providing growth capital regardless of gender or background. We also acknowledge that companies are often more successful when their founders bring different perspectives. In line with the principles set out in the Rose Review*, the Fund will look to provide financial and non-financial support to female entrepreneurs, and encourage increased diversity of management teams and boards.
 

* The Alison Rose Review of Female Entrepreneurship, March 2019
 

partnering with BGF

BGF (formerly the Business Growth Fund) was established in 2011 by the UK’s largest banks to support the UK’s ‘growth economy’. Today BGF is an investment partner for high-growth companies in a wide range of sectors. BGF provides the tools for growth, from funding to expertise, supporting companies to realise their growth ambitions.

Providing accessible mentorship is at the core of BGF’s investment model. BGF actively supports its investee companies through its market-leading Talent Network, with more than 6,000 non-executive directors and chairpersons who provide practical advice, oversight and connections.

 

£2.4bn

invested
 

~ 370 

companies backed
 

~ 70%

investments outside of London and the south East 

100+

exits (to end 2020)

 

5

of the UK's largest banks are shareholders
 

no. 1

most active growth capital investOR

What next?

The Fund held its first close in June 2021, and is expected to hold the second and final close in September 2021. If you have at least £250,000 to invest and would like to back some of the country’s most exciting businesses, then please get in touch to find out more.

 

This is a non-advised, illiquid, long-term product available only to Coutts clients eligible for Professional Client status.  This webpage is a summary of the Fund. Full details can be found in the Fund Information Document, including fees associated with the Fund investment service and management.

When investing, the value of your investments, and the income you receive from them, can go down as well as up and you may not get back as much as you invested. 

 

  • This information is produced by Coutts for information purposes only and for the sole use of the recipient and may not be reproduced in part or full without the prior permission of Coutts. This information is a financial promotion for UK regulatory purposes and it does not constitute financial or investment advice or a recommendation to invest, and under no circumstances should it be considered as such. This information is intended, and is only appropriate, for financially-experienced, high net worth individuals who:

    • are capable of electing to be a Professional Client (as described in the FCA rules);
    • are comfortable with higher-risk investments;
    • understand the nature and risks associated with the type of investment described herein; and
    • conduct their own due diligence and analysis.

    The value of investments, and the income from them, can go down as well as up, and you may not recover the amount of your original investment. Past performance should not be taken as a guide to future performance. Where an investment involves exposure to a foreign currency, changes in rates of exchange may cause the value of the investment, and the income from it, to go up or down. In the case of some investments, they may be illiquid and there may be no recognised market for them and it may therefore be difficult for you to deal in them or obtain reliable information about their value or the extent of the risks to which they are exposed.

    The information is believed to be correct, but cannot be guaranteed. Opinions constitute our judgement as at the date of issue and are subject to change. The analysis contained in this presentation has been procured, and may have been acted upon, by Coutts & Co. (Coutts) and connected companies for their own purposes, and the results are being made available to you on this understanding. To the extent permitted by law and regulation, neither Coutts nor any connected company accepts responsibility for any direct or indirect or consequential loss suffered by you or any other person as a result of your acting, or deciding not to act, in reliance upon such information, opinions and analysis. Coutts is a member of the Financial Services Compensation Scheme (FSCS) (the “Scheme”). Investment business undertaken with Coutts in the UK may be covered by the FSCS. In respect of investment business, the Scheme covers a claim up to a maximum of £85,000 per person. More details on the types of person and other entities who are or are not covered, and how eligible claims are calculated, can be found on the FSCS website www.fscs.org.uk.

    Tax reliefs and other matters referred to are those available under current legislation, which may change, and their availability and value will depend on your individual circumstances.

    Last updated: December 2020. 

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