EISNewsPar Equity

EIS battery management exit supercharges performance

By 12th November 2019 No Comments

Showing investors that investing in battery technologies has a positive side, EIS Fund manager Par Equity have given their investors an early Christmas present, with the announcement of the sale of EIS company ‘Dukosi’ for a confidential sum. This is the second positive exit for Par within the last month.

Par have now achieved an impressive 18 EIS exits and have realised over £50m of cash for investors. This is more than the leading EIS Funds in the market (as judged by funds raised last tax year) and based on industry statistics, we are confident that Par are the first growth EIS manager to return >£50m of cash to investors (excluding tax relief).

Edinburgh based Dukosi measures and monitors battery health and performance. It enables extended battery life through efficient charging and discharging, a vital component of electric and hybrid vehicles. As with every investment Par make, Par’s network or ‘Syndicate’ provided additional support and value. Dukosi was no different in that respect. Par first invested in 2012 and participated in several funding rounds since then. In particular, the Par Syndicate was instrumental in rescuing and supporting the business after the founder was tragically killed in a road accident. The business has been sold to a US Family Office.

This follows hot on the heels of the exit from DeltaDNA, a leading video games analysis firm.

Whilst the details of both exits remain confidential, the combined IRR of these two exits has produced a 31% IRR over 7.5 years. The total returns to investors of these exits is 3.3x money, with a 27% IRR. This excludes the tax benefits and includes unsuccessful investments.

Par Equity Partner Andrew Noble said “For us, the figures we are achieving are proof that our approach to company selection, due diligence, and support for these companies, is absolutely the right approach. It is worth adding that we are very excited about companies we have invested in recently. In the last year we’ve invested in 9 new companies and made 23 follow-on rounds in our portfolio companies.”

Kin Capital co-principal Richard Hoskins commented “This exit of battery company Dukosi shows the power of the Par EIS Fund investment strategy, even though the charges are low…”

Last year Par Equity won both the Enterprise Investment Scheme Association’s award and the 2018 Growth Investor Award for ‘Best Exit’ for generating a 76x return on investment for their exit of ICS Learn.

Please note, past performance is no indicator of future performance and may not be repeated. EIS investments, are long term, high risk and you may lose all of your capital and any tax breaks received. EIS investments are not suitable for all investors. Investors should be experienced in investing in Venture Capital investors or preferably seek advice from a suitably qualified IFA or financial adviser.

If you would like to find out more about the Par EIS Fund, please call one of the team on 0203 743 3100 or email info@kincapital.co.uk.