UK alts platform warns of capacity constraints in EIS space

London based Kuber Ventures, an alternative fund investment platform providing access to diversified portfolios and funds in the enterprise investment scheme (EIS) space, warned the enterprise investment scheme market is to face “significant capacity constraints in 2017”.

The firm believes investors may struggle to find quality investment opportunities if they do not start early their due diligence process.

“Recent changes in legislation, specifically those removing the ability to invest in renewable energy production within an EIS investment structure, have reduced the market capacity of investible opportunities by an estimated £500m for the year 2016/17.

“In previous years, the energy sector would account for approximately a third of the total £1.6bn  invested via EIS, demonstrating the scale of the reduction. This, in addition to a maturing book of some £200m of previous years EIS investments, the majority of which will likely be reinvested via similar EIS structures, will have a corresponding impact of capacity in the market,” Kuber Ventures highlighted.

According to Piers Denne (pictured), head of Sales for Kuber Ventures, a series of events that have combined putting strong pressure on the EIS market.

He pointed out that “advisers who delay in running due diligence on EIS investment houses and establishing access to capacity in the appropriate assets run the risk of not being able to secure the right assets.”

Adrien Paredes-Vanheule
Adrien Paredes-Vanheule is deputy editor and French-Speaking Europe Correspondent for InvestmentEurope, covering France, Belgium, Geneva and Monaco. Prior to joining InvestmentEurope, he spent almost five years writing for various publications in Monaco, primarily as a criminal and financial court reporter. Before that, he worked for newspapers and radio stations in France, in particular in Lyon.

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