Octopus Investments has told advisers with clients in its protected EIS scheme that it remains “confident” in the product but reminded them it does not guarantee investors’ capital will be preserved.
The Octopus protected EIS invests in Ticketus, a London-based firm that provided Glasgow Rangers with “working capital” in exchange for future season ticket sales. Rangers went into administration last month.
Administrators have accoun-ted for £18m of the £24m advan-ced to Rangers from Ticketus, which was used to pay off debt when the club was taken over by current owner Craig Whyte last May. In a statement sent to IFAs last week, Octopus says: “The current deal between Ticketus and Rangers was closed on May 9, 2011, several days after Craig Whyte purchased the club.
“To clarify, the funds paid by Ticketus were for the sole purpose of purchasing tickets from the then legal owners of the club.
“We remain confident in the product, our approach to investment and the ticketing model.”