New €7.5m BES fund to invest in tech and science

27 Oct 2008

Dublin private investment company Powerscourt Investments has formed a strategic alliance with Independent Trustee Company (ITC) to launch a new high-potential growth Business Expansion Scheme (BES) fund.

The fund is seeking to raise €7.5m from investors and will then strategically invest in high-potential growth companies, particularly in early stages of development.

The fund will focus on companies in such industries as telecoms, ICT, medical devices and pharmaceuticals.

The ITC’s head of group business development Iain Cahill said the investment, which will harness Ireland’s BES taxation structure to support businesses, will offer investors a return of 28pc per annum including the tax break, or 15pc per annum excluding the tax break over a minimum period of five years.

The new fund will invest in between five and seven companies over the time of the fund.

An investor in the fund can qualify for income tax relief in a single year or up to €150,000 if the individual has sufficient taxable income.

“The newly formed alliance gives investors in this fund the opportunity to benefit from the unique combination of ITC’s expertise in efficiently building tax-based investment structures with Powerscourt’s ability to effectively identify and source potential investee companies,” Cahill explained.

“Given the current circumstances in today’s investment environment, this fund represents a unique and exciting opportunity to get involved in a diversified investment portfolio that will result in attractive returns, coupled with a tax break for those that invest,” Cahill said.

By John Kennedy

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years