Oxford Capital announces EIS partnership with Quickfire Entertainment

Oxford Capital Media EIS will invest in film sales agent businesses.

Targeting up to 1.2x plus EIS tax reliefs, with opportunity to invest in this tax year.

Specialist investment manager Oxford Capital has named Quickfire Entertainment (‘Quickfire’) as a strategic partner for its new EIS fund, the Oxford Capital Media EIS.

Quickfire, a London-based film sales agency, has a wealth of intelligence on the international film sales market and has been involved with films across a number of geographies and genres – including Pitch Perfect, My Big Fat Greek Wedding 2, The Cove, I am Love and Welcome to the Punch.

Run by James Atherton and Jan Pace, both experienced film sales agents, the company’s films have secured 74 industry awards, including one Oscar (Best Documentary, The Cove).

“We are delighted to be working with Quickfire on these investments”, said Andrew Sherlock, Partner at Oxford Capital.

“Their track record in the film industry is impressive, and we believe our investee companies will benefit from Quickfire’s established network of directors, producers, distributors and film financiers”

The first tranche of the Oxford Capital Media EIS will be investing in companies which trade as film sales agents. Using this model, the companies can make a positive return even from productions that underperform, as well as enjoying increased returns from films that are commercially successful.

This gives the Oxford Capital offer a distinct risk profile when compared to other film EIS offers, many of which are reliant on box office success to generate positive returns for investors.

Quickfire will support the investee companies through the process of sourcing and selecting suitable films and monitoring the production process.

“Oxford Capital is one of the best-known and most respected names in the EIS market”, said James Atherton, CEO of Quickfire.

“We are pleased to be working with Oxford Capital to offer investors a slightly different type of EIS media opportunity.”

Oxford Capital has two companies lined up for investment, both of which have recently obtained Advance Assurance of EIS qualification from HMRC. This gives the Oxford Capital Media EIS an initial capacity of £10m.

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Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

What are the key risks?

  1. You could lose all the money you invest
    1. 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
    1. 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.
    2. 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
    1. 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.
    2. 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.
    3. 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
    1. 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.
    2. A good rule of thumb is not to invest more than 10% of your money in high-risk investments. https://www.fca.org.uk/investsmart/5-questions-ask-you-invest
  5. The value of your investment can be reduced
    1. 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.
    2. 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 here.