The goal of the Deepbridge EIS is to maximise the allocation of shares in each company the Investor invests in and in turn the Investor will receive full tax relief on the investment. To this end, fees will be charged to the Investee Company post the investment and not prior to investment.
a) Corporate Advisory and Arrangement Costs
Deepbridge, as Investment Manager, will charge the Investee Companies a corporate advisory and arrangement fee of up to 5% of funds invested in that Investee Company.
b) Annual Maintenance Fee
An annual maintenance fee of 2% of the funds invested in an Investee Company will be paid to the Investment Adviser by each Investee Company on an annual basis. From this fee, the Investment Adviser will pay certain operating costs of the Investee Company including the ongoing monitoring of each Investee Company.
c) Dealing and Custody Fees
The Investment Adviser will charge each Investee Company a dealing fee of 0.65% on the sale and purchase of shares, and a Custody Administration fee of 0.50% p.a. for the provision of custody services.
d) Performance Incentive Fee
The Manager will receive an incentive fee of 20% of the amount of cumulative total cash returned to the Deepbridge EIS by the Investee Companies in excess of the amount of the funds invested in the Investee Companies. For clariﬁcation, once the Investor has received in cash the ﬁrst 120 pence per 100 pence invested (ignoring any tax relief and representing a 20% hurdle on funds invested), any additional distributable cash will be paid as to 80% to the Investor and 20% to the Manager. This is intended to align the interests of the Investment Manager with those of the Investors and the incentive fee will therefore only become payable if the total cash returned to Investors exceeds the amount of initial capital invested by 20% or more.
e) Investor marketing and Other fees
The Manager reserves the right to levy additional fees to the Investee Company to meet any costs relating to investor marketing, additional fundraising and administration, custody and dealing services provided.
f) Shares, options and warrants
In certain instances, the Manager may also seek to take shares, options or warrants in the Investee Companies either in lieu of any of the above charges or fees in addition and in line with standard industry practice.
All fees, costs and expenses levied on the investee companies are stated excluding any VAT which will also be charged where applicable.