Catalyst ignites Lacomp Fund

Catalyst, a specialist adviser on tax-based investment schemes, has launched an EIS Fund that plans to back a range of companies that qualify for the tax-effective Enterprise Investment Scheme. This allows investors to mitigate income tax and capital gains tax bills.

Bagshot-based independent financial adviser Lacomp will manage the new EIS Fund. This follows the successful closure of the Catalyst EIS Fund. Investment advisers to this first fund were the publishers of Analystmagazine.

The new venture, called the Lacomp British Enterprise EIS Fund, hopes to draw on the expertise of a near identical advisory team, and has a similar structure. Lacomp hopes to raise around £5 million. The minimum subscription will be £5,000.

Lacomp managing director Peter Buxtorf says the money raised will be invested in ‘start-ups, early-stage businesses or companies requiring expansion capital’. Lacomp has previously focused on being an IFA firm, but is now looking to move into fund management.

Buxtorf adds: ‘This is definitely a new departure for us. I have always liked the EIS, but was put off by the high entry levels of £25,000-plus. It seemed sensible to allow people in at lower levels – hence the portfolio approach.'

Buxtorf says most investment proposals will come from sources such as the Catalyst Group, as well as individuals, including IFAs. ‘There are a lot of companies out there looking for money.’

Some investors will be Lacomp clients, while others will come via introductions by solicitors. As Buxtorf says: ‘The EIS is an ideal way of unlocking gains in trusts. Some of these are stuffed full of gains and, since the Trustees Act 2000, the trustees have to actively compare all opportunities for their clients.’

The investment advisory panel includes Catalyst co-founder Renwick Haddow, Danny Knapp, a partner at BDO Stoy Hayward, and Paul Finnigan, a director of Hoare Worth – a mergers and acquisitions specialist for small companies.

The initial costs are set at a steep 6.5 per cent, and there is an annual management fee of 1.5 per cent. There is no performance-related fee for the manager. Potential investors can request a brochure and application form by calling Lacomp on 01276-475123. The closing date is 21 November.

[19/08/02]