Private equity specialist company McDonald Glencross has introduced the McDonald Glencross approved enterprise investment scheme (EIS) 2.
The EIS is aimed at experienced investors with at least £40,000 to invest and who are looking for capital growth. They will also be looking to shelter any investment gains from capital gains tax.
EIS 2 will invest in a diversified portfolio of between eight and ten companies for a period of between three and five years. These companies will come from a number of different sectors, such as information technology, industrial technology, communications, life sciences and business services. They will all also vary in size, varying from start-up companies to ones that are about to be listed on the London stock exchange.
McDonald Glencross was founded in 1999 by Susan McDonald and John Glencross. McDonald worked for 15 years at Robert Fleming and Banco Santander. Glencross is a former executive director at UBS.
The technology market is currently in turmoil, as indices such as the Nasdaq-100 fall to the lowest levels in two years. EIS 2 will potentially have high levels of volatility, as it will be investing in companies that are just starting out and lack financial muscle. However by diversifying the number of sectors that the EIS will invest in, and by investing over the medium term, this should lessen the amount of risk.