Susan McDonald and John Glencross, who have both invested in unquoted companies since 1997, founded the company in 1999. The company has launched four generalist EIS funds, which are now fully invested. Calculus says half of the money invested in these funds is the personal money of UK fund managers and other City professionals and is aiming the new fund at high-net-worth clients who can meet the 50,000 minimum investment.
The 2006 fund aims for capital growth with a managed level of risk by investing in a portfolio of 10 to 12 EIS qualifying companies. It is a generalist fund so its portfolio will span pre-flotation companies, smaller management buy-ins and buy-outs and Aim companies.
The focus will be on established companies looking for capital to expand, while start ups and seed stage companies will be avoided because the manager regards the risks as unacceptably high for this type of fund.
The companies that make it into the portfolio will need to have excellent growth prospects and proven management teams. Calculus expects many to be in traditional sectors such as financial services and transport, with a focus on those can prosper in uncertain economic conditions. It is also important to Calculus that the companies provide a clear exit route for investors.
Calculus are alerted to potential investments through several avenues. They may be contacted directly by companies seeking investment or approached by syndicates looking for partners in larger investments.
?Other investment ideas will come through intermediaries and contacts.
This fund offers the diversity that a single EIS investing in one business cannot provide and having an experienced team to select the investments may provide a comfort factor for investors. However, unquoted companies may have small management teams which rely on a few key individual and may also be going through a lot of change, making this fund higher risk than a portfolio of quoted companies.