The role of Professional Advisor is a difficult one at best. The bewildering array of SEIS and EIS offerings in the market today and the various wording used to describe them, makes choosing product even more difficult.
At VN-CP we try to cut through all the ‘market noise’ by providing clear, concise, practical, legislation driven, professional third party referenced, renewable technology project opportunities, that make sense to the investor and IFA alike. To that end we have funded and launched a ‘NEW’ industry comparison search engine called “Compare Investments Dot Guru Ltd”. The first offering covers the ‘Alternative Investment’ marketplace specifically 3rd party professional assessment reports for all publicly listed SEIS & EIS Funds, Single Companies, BPR Schemes and VCT Funds. These are all scored across a range of ‘industry standard parameters’ such as:
- Project Management Team
- Funding Management Team
- Project Commercialisation Opportunity
- Market Place & Size
- Science & Engineering.
All current investment VN investment opportunities will be listed on the site, thus providing you the IFA with referenced due diligence as part of your client compliance obligations.
As part of our IFA support package registration is free and can be accessed via www.compatealternativeinvestments.guru today.
We currently can provide you with bespoke materials, video explanations, research documentation, technical information, specific project management team access and direct investor presentations, either by group or on a one-to-one basis, on or off-site. In the future we will via the comparison site also be able provide you with a clear client/project compliance trail.
As for managing the projects, we are completely focused on delivering the maximum amount of value for every £1 invested in each project. It seems obvious, but when considering the time, effort and money to secure investor funds, the key focus for any management team should be on keeping costs to a minimum by getting as much out of each supplier engagement as it can, therefore adding maximum value at each and every stage of project development. Unfortunately for investors the majority of projects on offer do not subscribe to this school of thought.
By way of practical explanation for example, all VN-CP originated SEIS & EIS SPV’s do NOT have the following individual overheads to consider:
- Office/premises costs
- Management salaries
- Fund management fees
- Ongoing business OPEX.
Rather, there is a single £5k pa – per SPV, charge levied by VN Capital Partners for full administration and management services provision, including annual returns, VAT reporting and full year end accounts. This means that each and every VN-CP project has a significant commercial edge over most start-up companies that it competes with in the market. Often, the single reason for early stage companies failing is escalating OPEX costs in the form of salaries, management fees, professional fees, leases and other commercial service expenses.
How can we provide this service at that price?
Its quite simple, we arbitrage equity for services. For example, we provide our accountants, Simmons Gainsford (SG LLP) with a small equity stake in each and every project created. In return, SG LLP provide us with full access to all in-house professional services, including their offices in Chandos Street where we are able to manage company administration and hold investor meetings/presentations onsite. All key project management team members/Directors are also incentivised with an equity stake in the individual project SPV they have responsibility for, and finally we at VN-CP also hold an equity stake in the project. Thus we all
trade expertise and management for equity, to the cash benefit of the project.
In stage 1 and 2 developments all professional project management team members/Directors use their own company or consultancy for personal income, whilst guaranteeing the SPV a agreed number of hours or input in return for their equity position.
Why is this important?
The team at VN Capital Partners believe that as much of the investors money as possible should go into delivering projects and value for shareholders thus providing the SPV with the best possible chance of success, not be paid away as fees for fund management or salaries for management teams. We also believe that all project management teams should completely aligned to investors, i.e. their success is determined by the nature and size of the exit.
Given the multitude of promises, guaranteed return claims and various assurances given in the SEIS & EIS product market today, VN Capital Partners offer transparent, straightforward and cost effective renewable opportunities that provide potentially significant returns to investors, with none of the usual market noise or significant percentage uptake of any upside if/when the opportunity is successful.