Has anyone had success applying EIS to a search fund? I saw some posts here 2/3 years ago which weren't conclusive. The main clause from HRMC that makes this possible is below:
"If you did not receive investment within the first 7 years, or now want to raise money for a different activity from a previous investment, you’ll have to show that the money:
> is required to enter a completely new product market or a new geographic market
> you’re seeking is at least 50% of your company’s average annual turnover for the last 5 years"
I've seen several search funds that nearly cross this 50% threshold and the new product or market clause applies as well. These deals often also use debt where it would be far more advantageous to increase the equity component given the significant tax benefits.
EIS (Enterprise Investment Schemes) should be applicable to search funds

by an investor from University of Oxford
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