We were proud to launch our innovative structure in 2024 which introduced the first tiered initial fee structure of its kind in the EIS space. This fee structure included benefits such as VAT efficiency on initial fees, capped ongoing fees, and lifetime fees which fell far below the market average. These changes made our fund one of the most cost effective EIS propositions on the market.
What have we changed and why?
The most notable change to our EIS Fund fee structure is the simplification of the initial fee tiers. We previously introduced five initial fee tiers, which reduced as subscription size increased. Unlike many of our competitors, this is also VAT free. The new structure has three initial fee tiers, which remain VAT free, and start at 3% and range to 1%. This is a change we were keen to introduce because it simplifies the charging structure for financial advisors and their clients. Furthermore, it will allow financial advisors who need to meet initial fee restrictions for their pre-approval process to recommend the Oxford Capital EIS Fund to their clients.
Whilst we have increased our ongoing fee from 1.25% to 1.75% this is still capped to be charged for a maximum of seven years, meaning our lifetime fees remain some of the most cost effective in the market. In fact, the changes to our fee structure mean that clients will have a greater proportion of their subscription invested for EIS tax relief, and the lifetime cost is comparable to our previous fee structure.
Other elements of our fee structure which haven’t changed are our flat rate admin fee, which covers the cost of custody fees audit fees EIS certificate production and any other miscellaneous costs, and our performance fee, which is only charged once a client has received 120% of their subscription in distributions.
If you would like to speak to us to learn more about the Oxford Capital EIS Fund, or have any specific cases you would like to discuss, please get in touch.