High risk investment
important information

What are the key risks?

1. You could lose all the money you invest

• If the business you invest in fails, you are likely to lose 100% of the money you invested. Most start-up businesses fail.

2. You are unlikely to be protected if something goes wrong

•  [The business offering this investment is not regulated by the FCA. Protection from the Financial Services Compensation Scheme (FSCS) only considers claims against failed regulated firms. Learn more about FSCS protection here.] or
• [Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker here.]
• [The Financial Ombudsman Service (FOS) will not be able to consider complaints related to this firm] or [Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it.] Learn more about FOS protection here.

3. You won’t get your money back quickly

• Even if the business you invest in is successful, it may take several years to get your money back. You are unlikely to be able to sell your investment early.
• The most likely way to get your money back is if the business is bought by another business or lists its shares on an exchange such as the London Stock Exchange. These events are not common.
• If you are investing in a start-up business, you should not expect to get your money back through dividends. Start-up businesses rarely pay these.

4. Don’t put all your eggs in one basket

• Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
• A good rule of thumb is not to invest more than 10% of your money in high-risk investments.

5. The value of your investment can be reduced

• The percentage of the business that you own will decrease if the business issues more shares. This could mean that the value of your investment reduces, depending on how much the business grows. Most start-up businesses issue multiple rounds of shares.
• These new shares could have additional rights that your shares don’t have, such as the right to receive a fixed dividend, which could further reduce your chances of getting a return on your investment.

If you are interested in learning more about how to protect yourself, visit the FCA’s website https://www.fca.org.uk/investsmart

Risk warnings

Limited Partnership Interests

Liquidity

A subscription for Limited Partnership Interests will generally be illiquid. It is not anticipated that a public market for Limited Partnership Interests will develop. A Limited Partner may not be able to sell their Limited Partnership Interest at an acceptable price, or at all. In addition, it may be difficult for a Limited Partner to obtain reliable information about the value of a Limited Partnership Interest or the extent of the risks to which such a Limited Partnership Interest is exposed. There is no guarantee that the valuations given on periodic statements will accurately reflect the realisation proceeds that may be obtained. As with all valuations, the valuations are based only on the valuer’s professional opinion on a stated date.

Prospective Limited Partners should have the financial ability and willingness to accept the risks and lack of liquidity associated with investment in an unregulated collective investment scheme of this type.

Long-term investment

The opportunity described in this Memorandum may not be suitable for all recipients. The Partnership is designed to be a long-term opportunity. It is not designed as a short-term opportunity. Any prospective Limited Partner who has any doubt about the suitability of the Partnership should consult an independent financial adviser regarding all aspects of the Partnership, including taxation matters, prior to committing to subscribe for Limited Partnership Interests in the Partnership.

Concentration

The Partnership may take significant positions in a limited number of assets, a potential consequence of which could be that returns could be adversely affected by the poor performance of any one of these large investments or any one or more of the sectors in which they operate.

Illiquidity

A subscription for Limited Partnership Interests should be viewed as illiquid. It is uncertain as to when profits, if any, will be realised. Losses on unsuccessful investments may be realised before gains on successful investments are realised.

The return of capital and the realisation of gains, if any, generally will occur only upon the partial or complete disposition of an investment. While an investment may be sold at any time, it is generally expected that this will not occur for a number of years after the initial investment is made. Before such time, there may be no current return on the investment. If the Partnership was ever required to liquidate its interest in an investment at short notice, either in whole or in part, the realised value may be significantly less than the asset value of the investment. Furthermore, the expenses of operating the Partnership may exceed its income thereby requiring that the difference be paid from the Partnership’s capital including, without limitation, unfunded Commitments.

Past performance

Past performance of similar investments is not necessarily a guide to future performance of the Partnership’s investments.