Redwood Capital

Fund: Redwood 12 | Q1 2021 | Late stage tech

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 GENERAL INFORMATION 

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About Redwood Capital.

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About Redwood 12 | Q1 2021 | Late stage tech.

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

Raised so far: £5.6m

Target: £10m

 KEY FACTS AND TRACK RECORD 

Assets under management
£112m
Launched in
2012
Sector(s)
Deep tech, AI
Target return (excl. tax relief) per annum
14%
Track record return (excl. tax relief) per annum
12%
Duration of fund
7 years
Tax rebate?
Yes, EIS: 30% of investment amount
Loss protection?
Yes
Inheritance tax relief?
Yes
Capital Gains relief?
Yes

Track record

 

Fund performance on the basis of £100 being invested in previous years. Remember, past performance is no guarantee of future success.

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About Redwood Capital.

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 INDEPENDENT ANALYSIS 

Provided by Tax Efficient Review

The relationship between the Elderstreet VCT team of Michael Jackson and William Horlick began with Draper Esprit at the end of 2016, and it made sense from the point of view of the Elderstreet board and shareholders as the Elderstreet VCT was too small to compete for new deals and was hampered by being unable to raise significant levels of new cash from investors.

 

With the additional resources of the well-regarded Draper Esprit team, they have been able to raise new money and participate in a range of new investments, the same as investors would have had within the Draper Esprit EIS but with a much higher level of diversification.

 

The initial concerns about this relationship (whether this was simply a re-badged VCT trading under a different name but continuing the same investment strategy) have been assuaged. There has been a marked change in the investment strategy of this VCT following the tie-up with Draper Esprit and this is the change that was needed to revitalise this VCT.

 

The full formalisation of the relationship between Elderstreet and Draper Esprit is expected to be completed in 2020. In our view, for VCT investors who seek diversification and a yielding investment this is a very interesting addition alongside the existing, growth-oriented Draper Esprit EIS, and a VCT that is differentiated versus other VCTs through the dealflow already proven by the successful Draper EIS funds. Accordingly we have increased our score.

 

Tax Efficient Review rating: 86 out of 100 (for a Generalist VCT with track record)

Redwood Capital: Previous Investees.

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Klarna

Klarna is an e-commerce payment solutions platform for merchants and shoppers. The platform gives customers the freedom to choose how and when to pay. They also offers direct payments, pay after delivery options, and installment plans.

Redwood invested in 2011 at a £3m post-money valuation, which has now increased 1192% as Klarna looks ahead to an IPO.

As this is not a VCT, by investing in this fund you will not have exposure to Klarna.

Performance Scenarios

Here is how your investment could perform under different scenarios provided by the fund.

Immediate return from tax benefit:

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Initial investment: £10,000                    Tax rebate: £3,000   

Net cost after rebate: £7,000                Initial return from tax benefit: +42%

Long term returns:

Recent press for Redwood Capital.

Techcrunch: Top 100 VC's

Sept. 23, 2023 at 11am

Techcrunch: Top 100 VC's

Sept. 23, 2023 at 11am

Techcrunch: Top 100 VC's

Sept. 23, 2023 at 11am

Techcrunch: Top 100 VC's

Sept. 23, 2023 at 11am

Techcrunch: Top 100 VC's

Sept. 23, 2023 at 11am

Techcrunch: Top 100 VC's

Sept. 23, 2023 at 11am

Risks.

  • Our investment products put capital at risk.

  • Remember, the value of an investment can fall as well as rise. Investors may not get back the full amount they invest.

  • Tax treatment depends on individual circumstances and could change in the future.

  • Fund investments are not protected by the Financial Services Compensation Scheme.

This investment is intended for an investor with:

  • Average knowledge of relevant financial products;

  • Some financial industry experience;

  • An understanding that investing in small, young businesses comes with a higher risk profile than traditional investments;

  • The ability to bear losses of up to 100% of the capital invested; and

  • An investment horizon of at least 5 years