Oxford Capital launches Number 5

02 June 2008

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Fund

Oxford Capital has launched its fifth Oxford Gateway Enterprise Investment Scheme (EIS) Fund, Oxford Gateway Fund No 5. The fund has a target of £20m and is expected to reach it within 8-10 months. Minimum subscription is £25,000 and the maximum is £2m with a minimum holding period of three years if full tax advantages are to be captured. The fund's life span is seven years. The EIS structure offers tax advantages including income tax relief on investment at 20%, income tax carry back relief, a capital gains tax exemption and 100% inheritance tax relief. Loss relief of up to 52% is available on a loss on any qualifying investment in the portfolio, irrespective of the overall performance of the portfolio. The fund can also provide tax savings of 22% on existing capital gains. Investors with gains achieved in the last three years that are liable to tax at a 40% rate can reinvest these gains into the fund and defer the CGT to benefit from the new 18% ceiling.

Oxford Gateway Fund No 5 has an initial fee of 5% and an annual management fee of 2.5%. There is a performance fee of 20% of the fund's net return after 100% return of investors' capital. A commission of 2% is available to professional advisers acting as authorised intermediaries.

SJ Berwin provided legal advice.

Investors

London-based investment managers make up 40% of the fund's investors, 30% are based in Europe, the Middle East and Asia and the remaining 30% are charities and wealthy families or individuals.

Investments

The fund will make early-stage investments in the healthcare, communications and sustainability sectors. Sustainability includes sectors such as renewable energy and sustainable environmental technology. The fund aims to achieve an equal split between these sectors. The fund will also occasionally consider seed funding. The fund will invest between £500,000 and £2m per company and acquire stakes between 5% and 49%.

People

Ted Mott is chief executive of Oxford Capital, which manages the Oxford Gateway Funds.

Name: Oxford Gateway Fund No 5

Target: £20m

Focus: Early-stage, expansion

Contact: Joanne Telford

Address: Oxford Capital Partners, 201 Cumnor Hill, Oxford, OX2 9PJ, United Kingdom

Tel: +44 1865 860 760

Fax: +44 1865 860 761.