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Explaining the Growthdeck 'carried interest' scheme

by Growthdeck Team

7 March 2016

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In each business that we successfully fund, Growthdeck will be allocated what is known in the Private Equity industry as "a carry" - the right to acquire a stake in the investee company, typically 3-5% at a nominal cost. Growthdeck shareholders will be offered these shares, at the same nominal cost, in proportion to their shareholding in Growthdeck.


We are aiming to raise funds for some 30 companies over the next three years, so if you become a Growthdeck shareholder, you would be offered low-cost shares in each of those companies, in proportion to your investment in Growthdeck. We expect that most of these shares will qualify for SEIS/EIS tax relief, which could allow you to sell them, at exit, free of capital gains tax*.

You invest in Growthdeck
from £1,000

 


You are offered
Business 1
Carried interest
Business 2
Carried interest
Business 3
Carried interest
Business 4
Carried interest
Business 5
Carried interest

x30


 

 

What this could mean in practice

If, for example, Framvern are successfully funded and achieve the exit valuation laid out in their investment offer, then an investor in Growthdeck would gain approximately 8% return from that one carried interest alone.

And this is on top of any return you may get from the Growthdeck investment itself

Notes

* This may vary from business to business and will be subject to your own personal tax status.

Your capital is at risk if you invest though Growthdeck Limited. Investing in start-ups and early stage businesses involves risks, including illiquidity (the inability to sell assets quickly or without substantial loss in value), lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. There is no secondary market available meaning that these securities are illiquid. As a result, it is possible you may lose all of your capital.


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