Ingenious Ventures, the entertainment-focused venture capital trust (VCT) and Enterprise Investment Schemes (EIS) manager, has launched its fifth Shelley Media Fund.
Ingenious Ventures, the entertainment-focused venture capital trust (VCT) and Enterprise Investment Scheme (EIS) manager, has launched its fifth Shelley Media Fund.
The fund will invest in EIS companies that are producing films, television programmes and video games, which are sectors the firm claims continue to exhibit ‘strong indicators for sustained growth’. It aims to raise at least £15 million ahead of a scheduled close in April next year.
Last year, there were two Shelley fund raises with Shelley Media Fund 3 and 4, which raised a combined total of £11.5 million. Ingenious expects a higher raise for Shelley Media Fund 5 because of the increase in the EIS tax relief to 30 per cent and the higher anticipated returns.
EIS companies must be unquoted and must not be under the control of another company or of a company and persons connected with that company. It must also be a qualifying trading business or be the parent company of a qualifying trading group outlined by HMRC rules. Certain companies, for instance those dealing in property, are not eligible.
In explaining its investment strategy, Ingenious points to research from accountancy firm PricewaterhouseCoopers that shows worldwide revenues from filmed entertainment through theatrical release, video/DVD and digital are anticipated to grow to $114.8 billion by 2015 from $86.2 billion recorded in 2010.
It also highlights that the UK boasts the largest television market in Europe and total television subscription and licence fees in the UK are forecast to increase from a base of £11.9 billion in 2010 reaching £14.7 billion in 2015. The console games market is expected to grow to $34.8 billion in the same period.
Stephen Fuss, investment director at Ingenious Media Investments, comments, ‘We are very excited to be launching the fifth of our successful Shelley Media Funds, maintaining our focus on capital preservation and the potential to achieve significant returns from commercially viable opportunities in the Entertainment sector.’
Minimum investment in the fund is £3,000. The fund’s launch comes three months after reports that Ingenious is positioning to exit some of its festival investments before the end of the year.
Ingenious has a number of investments in the growing music festival market including the dance festival Creamfields, the Rewind Festival and Field Day in London’s Victoria Park. It also has a stake in the food festival Taste.