EA Fund 2
EA Fund 2 opened for investment on 16 February 2016 and has recently closed having raised $2.6m. The Fund has commenced investing, with the first portfolio companies being Inverse (ice hair conditioning system) and UBCO (electric bike). For information on how the funds work, you can view a promotional video for EA Fund 2 (closed) by clicking on the link below.
If you are interested in investing in early stage companies via an Angel fund, please contact us using the form on the right.
Key terms of Fund 2:
- Available only to 'Wholesale Investors' as that term is defined in Schedule 1 of the Financial Markets Conduct Act 2013 (the Act). A definition of 'Wholesale Investors' can be found here.
- The minimum size of the Fund was $2 million.
- Investment was via investment units in EA Fund 2 Limited Partnership.
- Issue price was $1.00 per unit, with NZ$0.20 payable on application and the balance payable in tranches over time. By way of illustration, on a $30,000 investment, $6,600 was payable upon application (20% of $30,000 and 2% application fee) and it is estimated that a further $6,000 call would be made in years 1, 2, 3 and 4.
- The minimum subscription was 30,000 units for $30,000, payable in tranches. Further subscriptions needed to be made in multiples of 5,000 units.
- An application fee of 2% of committed capital was payable on application.
- A management fee of 2% per annum of total committed capital will be charged in years one to five and 2% per annum of invested capital thereafter.
- A performance fee of 10% will be charged on distributions to investors once returns have exceeded an internal rate of return (“IRR”) of 10% per annum.
- The Fund will be a closed fund i.e. once the Fund is closed for initial subscriptions, there will be no further opportunity to invest in the Fund.
- The Fund will look to invest in the first three years and operate for up to 10 years.
- Proceeds from liquidating investments will be distributed to investors, not invested back into the Fund.
- A key point of the Fund is that it is an efficient mechanism for investors to build a portfolio of early stage company investments.
- The Fund will focus on the following investments, however will reserve the right to make investments in other sectors, stages and locations if determined appropriate by the Fund Investment Committee:
- Sectors – high growth potential companies innovating in:
- Life sciences (dairy, agriculture, horticulture, animal health and productivity);
- Cleantech; and
- IT technology
- Stage – seed and startup stages.
- Location - New Zealand.
Want to invest in an Angel Fund?
If you are interested in investing in early stage companies via an Angel fund to gain diversification in this high risk, high reward part of the market, please contact us using this form and we will contact you when a new fund is launched.