CH1 Investment Partners LLP ("CH1") provides bespoke investment solutions to High Net Worth, Professional and Sophisticated Investors. We specialise in giving regulated advice to suitable investors on single company or asset investments. Sourced by us, we provide access to off-market transactions which, typically, will be uncorrelated to traditional asset classes.
It is our belief that by investing in single assets or businesses, we can help our clients understand the risks involved in investing in these areas and provide complete clarity on the potential risks, rewards, costs and timings involved.
One of our key principles is that one or more of the Partners of CH1 will also invest in any business we recommend, alongside investors, on the same terms.
Where possible and if appropriate, we will also take a seat on the Company’s board. This allows us to be as close to the underlying assets or businesses as possible and gives investors access to a high level of information on performance, tax certificates and exits.
Partner
Matthew founded CH1 Investment Partners with Richard Spacey, with whom he has worked for the last eight years. Previously, Matthew was a Founding Partner of LGT Vestra in 2007, where along with Richard, he ran the Ventures team, focusing on renewables, unlisted commercial property and private equity investments. Prior to that, Matthew ran the Financial Planning department at PwC in London. Matthew is also a Director on several of the investments he has advised on, including Longhedge Renewables, Lake District Biogas Limited and Osprey Solar.
Partner
Richard is a Chartered Fellow of the CISI and has been in financial services for over 27 years. After spending 17 years at Lloyds Bank, Richard moved to an offshore private bank providing specialist investment advice and management. This was followed by three years in a boutique financial services office focused on UK tax planning in London. Richard joined Vestra Wealth and headed up the Vestra Ventures team with Matthew Evans, successfully raising funds in various sectors for eight years. Richard is a Director of several of the investments he has advised on, including Keystone Energy, Tavern Restaurants, I3, Lumicity Solar and Osprey Solar.
Partnership Manager
Elaine has the dual responsibility of running the CH1 office whilst also offering direct support to Matthew Evans. Elaine is a Partner in CH1 and joined at launch, having previously worked at LGT Vestra. Elaine has vast experience in the financial sector having performed similar roles for a number of firms including UBS, PIFC and Johnson Fry. Throughout her career Elaine has worked across the majority of investment products, coming to focus on non-standard investments where she has worked for the last eight years.
Over the last ten years, the team has raised over £500 million pounds in Enterprise Investment Scheme ("EIS") qualifying Companies, structured debt (asset backed loan notes), individual commercial and residential property and Venture Capital Trusts ("VCT").
Invest in smaller companies using the EIS and access generous tax efficient reliefs.
The EIS is a tax-efficient way to invest in the new shares of small businesses, as well as giving much-needed capital to businesses that cannot get funding from traditional methods such as banks and venture capitalists. The UK Government introduced the scheme over 20 years ago to encourage domestic investors to support entrepreneurial UK companies while offering significant tax breaks to offset the generic high risk nature of early stage investing. In recent years the scheme has been relaxed to allow overseas businesses to qualify as long as they meet the qualifying conditions.
These schemes offer investors significant benefits: investors who invest for a minimum period of three years benefit from 30 per cent tax relief as well as exemption from capital gains tax ("CGT") and inheritance tax ("IHT") which means growth within an EIS qualifying investment is tax-free.
Putting money into an EIS could give you:
Amberside ALP (www.ambersideALP.com) gives investors the opportunity to buy ISA qualifying bonds and benefit from tax free income generated by loans to infrastructure projects. ALP is backed by specialists Amberside Capital alongside CH1. The experienced team conduct professional due diligence on every transaction, provide a clear understanding and suitable mitigation of the risks involved and support borrowers not served well by major high street banks. With the first loan already in place, Amberside ALP have a pipeline of solar parks, grid support facilities, effluent treatment plants and other similar infrastructure projects.
Loan NotesLoan notes are issued by companies looking to raise funds where traditional lenders, such as banks, see them as too small, too new or they have simply left the sector (renewable infrastructure build risk). They will offer a higher return than cash and could run for as a short term as 1 month or as long as 5 years.
The assets which CH1 will consider for lending against include VAT financing, bridging finance, construction finance and invoice discounting. They will all be secured against a fixed asset and will have defined income and return profiles.
Generic RisksIt is important to realise that the benefits of investing in Enterprise Investment Scheme qualifying companies are in exchange for the generic high risk nature of this type of investment. EIS should be viewed as higher risk than traditional assets (stocks & shares and bonds for example) and are not suitable for everyone. It is important to know that your capital is at risk.
The value of an investment in these products may fall as well as rise and you may not receive back the full amount invested. These products will invest in small companies which, by their nature, will be more likely to fluctuate in value and may be more difficult to sell than larger companies. It should also be noted that all businesses are different and risks need to be considered on a case by case basis.
The tax treatment is dependent on individual circumstances and may be subject to change in the future. The availability of tax reliefs also depends on the portfolio companies maintaining their qualifying status. We strongly recommend that you seek independent financial advice before making an investment.
These investments are normally considered as being medium to longer term and more often than not are made into private companies. Traditionally they have two main exit strategies; a listing on a recognised exchange to enable sale of the equity or a trade sale to another corporate body.
Under EIS rules, investors have to hold the shares for a minimum of three years in order to qualify for all the tax reliefs available. It is sensible for investors to take a three to five year view on these investments as a guide.
Loan notes will be secured against fixed assets, whilst having considerably less risk than equity investments investors must be aware that they are not risk free. Investments may take longer to repay original capital than first thought which could adversely affect the interest return and in the event of default, investors would have to wait until the underlying assets are sold before their capital is returned. For every project you consider we will outline the risks associated and the safeguards put in place to mitigate them as much as possible.
Other ServicesIn addition to bespoke investment solutions, we can also provide (through our sister company HRi Investments Ltd) advice on pensions, life insurance and discretionary fund management.
What is the EIS?
The EIS (Enterprise Investment Scheme) is a government backed scheme that offers a multitude of tax breaks and incentives to qualifying investors who invest in approved growth companies. The idea is to make investment in entrepreneurial enterprises which stimulate the economy more appealing by offsetting elements of the risk whilst maximising the potential returns.
How do I qualify for the tax incentives available under the EIS?
The scale and the range of the benefits will depend on an investor’s individual financial circumstance but to qualify at all you must be a UK taxpayer with a tax liability in the current or previous tax years.
How does CH1 help?
CH1 will review multiple investment opportunities continually throughout the year, only selecting the investments we feel are most appropriate to present to clients once we understand their individual needs and risk tolerances.
How long does the due diligence process take?
It will vary on a case by case basis but the vast majority of opportunities we consider will take at least two months or longer. We have an internal investment committee including the Founding Partners and three external experienced investors who will sign off the investment prior to investors being approached.
Due to the high risk nature of early stage private equity investments, investors will need to satisfy and certify they meet one of the investor criteria listed below to prove they are able to understand and accept the risk. Before we provide any information or advice on a project, you will be required to confirm your suitability in writing.
Investments in early stage or unlisted companies - whilst offering potentially higher returns and, in the case of EIS qualifying companies, a range of tax breaks - are only suitable for financially sophisticated investors who are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses that may arise. Such losses may be equal to the whole amount invested. No representation is, or can be, made as to the performance of the investment and there can be no assurance that the Company will achieve its objectives. We will provide a suitability document which will list what we believe are the most significant risk factors in the investment, but these may not necessarily comprise all those associated with the investment as changes in market or economic conditions or in legal, regulatory or tax requirements may be unforeseen and adversely impact the Company.