Frequently Asked Questions | Consortium Investment Network

Do I qualify under the FCA guidelines to invest in private companies?

The FCA guidelines are very clear when it comes to the persons we can introduce to the companies we represent. You will need to be able to sign a form that comes with the application pack as either:

1) A Self Certified Sophisticated Investor, where at least one of the following applies:

You are a member of a network or syndicate of business angels and have been so for at least the last six months
You have made more than one investment in an unlisted company in the two years prior
You are working, or have worked in the two years prior, in a professional capacity in the private equity sector
You are, or have been in the two years prior, a director of a company with an annual turnover of at least £1 million

2) A Certified High Net Worth Investor, where at least one of the following applies:

You had, during the financial year immediately preceding, an annual income to the value of £100,000 or more
You had, throughout the financial year immediately preceding, net assets to the value of £250,000 or more (excluding primary residence, insurance, pensions)

Note that you can qualify as a Self Certified Sophisticated Investor by joining our network.

How do I join your network?

Simply fill in the form on our website, and a member of our team will get in touch.

Why should I invest in Private Companies?

Private Companies can be a great way of diversifying investment portfolios by hedging against market movements and inflation. The upside potential of alternative investments can also dwarf many traditional investments available in the markets.

Where does my money go when I invest?

Our key phrase 'Transparency is Key' means that should you show an interest in a particular company and decide to invest, all monies go directly to that company in the form of a transfer or cheque, along with the application form.

What are the charges involved?

If you were to invest your money, it would go directly where it should: buying shares in the company. There are no commissions for you to pay, and you don't pay us a penny.

How do you earn your money?

We earn a small commission, a finder's fee if you like, directly from the company we are raising funds for. Our commission structure is pivoted towards equity. In short, we're also invested in the same positions as you. Our success is your success and vice versa.

Where do my share certificates come from?

The company that you invest in will have an appointed share registrar who will issue the share certificates.

Where are the companies based?

We only deal with British companies. All of the businesses we work with are UK-based.

Can I speak with the Directors of the business I invest in?

We only deal with companies that offer an open-door policy to their shareholders, whether by phone or in person.

How can I track the company I am invested in?

Our role is to keep you informed about the company you have invested in, right up until exit. We will keep you posted on all fronts. Of course, you will still receive updates directly from the company in the form of shareholder letters, but we will call you with any significant developments as they happen.

How long will my money be tied up?

We tend to focus on companies that are projecting an exit strategy within 18 to 24 months. If the company is EIS-approved, we advise holding the position for the 3-year period to take advantage of the various tax breaks.

What is my exit strategy?

Exit strategies vary from company to company. We focus on companies that look like real acquisition targets, as the present market liquidity can make it difficult to gain market listings. Some companies are structured to pay a dividend whilst they position themselves for a liquidity event; others are EIS-approved, and, as such, qualifying investors can receive 30% of their investment back as income tax relief in the early stages.