The o2h Human Health EIS Knowledge Intensive Fund is a discretionary managed portfolio service structured as an Alternative Investment Fund and focused on investing in a portfolio of companies that develop therapeutics or supply services to such companies. The target return is an IRR of 20%. There is no income target.
Why invest
Positives
- Strategy: To invest in companies developing new therapeutics, AI companies accelerating development and enabling service companies.
Issues
- Track record: As a relatively new manager in the sector, o2h only has a record of deployment to date.
The investment advisor
Positives
- Team: The o2h team is highly experienced in its specialist area, with plans to add to its support infrastructure.
Issues
- Team size: The investment team is relatively small, although it has surrounded itself with strong support from its network.
Nuts & bolts
- Investing: The fund operates with six-monthly closes. This is an HMRC Approved Knowledge Intensive Fund, the first of such funds in the market.
- Diversification: Portfolio of between five and ten companies across three subsectors.
- Valuation: Valuations will be provided semi-annually, with online access. The expectation is that most of these will be based on the latest transaction price.
Fees
- Fees: Mixture of direct fees and charged via the investee companies.
- Performance fee: 20% on gains over a return of total capital invested.
Risks
- Risk mitigation: o2h Ventures aims to mitigate risk by investing in companies that the manager knows well; only following on when milestones have been reached and diversifying across a range of areas.
- Target return: The target return for the fund is a 20% IRR over three to seven years. While the prospect of secondary sales makes this timescale more realistic and successful companies will give an excellent return, there is a real risk of loss for those that don’t.
Download the full report
