What amount can I invest in the fund?
The fund will accept a minimum investment commitment of $100,000 and any larger amount up to $15 million if the fund reaches the maximum pool of committed funds of $50 million.

What do you mean by commitment?
The fund asks for an initial commitment from each investor. When the fund is closed each investor will be required to advance 30% of their committed investment to the fund together with their Eligibility Declaration Form and Application Form (sections 20 &21). The balance of the committed investment will be called by the fund as required to make approved investments. This is expected to be over the next 6 to 12 months.

What level of return will be achieved?
The level of return will be dependant upon the performance of the companies invested in by the fund. The fund will not invest in any specific business unless it can demonstrate a strong probability that it can generate a minimum annual return of 15% net of costs. The returns from the fund will hopefully be much higher but cannot be guaranteed to be achieved.
The returns will also be tax exempt.

What is tax exempt and why is this possible?
You should talk to your accountant but tax exempt means all capital gains and revenue flowing to the investors will not be taxed, irrespective of the structure of ownership. The fund is registered with Innovation Australia and has tax exempt status due to the nature of the investment activities it is undertaking. Essentially the Federal Government has provided the tax exemption to encourage investment into expanding innovative private businesses.

How long before the returns are received?
The fund will operate for a minimum of 6 years and more likely at least 8 years. During this period the fund is likely to make distributions to investors but is unlikely to return all investors funds until expiry.

Can I obtain my investment in the fund earlier than this?
No. The fund will not repay any one individual investment ahead of other investors. In cases of hardship the fund manager may allow, and assist with, the sale and assignment to new or existing investors but there would be costs associated with this.

What sort of fees are investors paying?
The fees charged by the fund to make and manage the investments will not exceed 2% of the committed investment and depending on the size of the fund could be as low as 1.3%. The fund is not profiting from the management of the fund and will rebate back to investors all fees that are not needed for operations. Performance fees are not paid until all investors receive a minimum of 200% of their investment and a minimum investment of 15% per annum. The manager of the fund is then entitled to 30% of the increase in profits above the 200% as and when distributed to the investors.

What type of businesses will the fund invest in?
The fund will invest in a wide range of private businesses that can demonstrate that the investment will assist them to expand the commercialization of existing innovative products and services. Investments are expected to range between $1 million and $5 million.

These questions and answers need to be read in conjunction with the Information Memorandum and particularly sections 3, 11 and 18 that cover the risk factors.