Ours is not another option for you to consider when making your direct SME investment decisions, your angel investments, and your seed capital investments, it is a compliment to those decisions and investments.
Our Sustainable Enterprise Fund utilises the Self Managed VC Fund model, so that investors have choice, control, and alignment. Not only will it ensure your investment enjoys complete tax exemption on all Income and Capital Gains (when made through our compliant investment funds), but it works collaboratively with you so that you participate in more of the controls otherwise reserved to the fund manager.
Plus, you are provided with valuable additional benefits to supplement your own investment management decisions, processes and skills, along with comprehensive investment reporting.
Also, fees are effectively paid from either what the tax office gives you or just a portion of what you would otherwise have paid to the tax office.
Compliment & Collaborate
The Self-Managed VC Fund model is complimentary to your normal direct SME investment processes because administration works with you to supplement your investment decision making and management processes, not replace them.
Administration often engages investors with deep domain expertise to provide advice to the fund, including for any investments they may align with.
Tax Exemption, Definitely Not Tax Evasion
The Venture Capital Act was specifically created, and the Income Tax Assessment Act amended, to enable the existence of specific Federal Government tax incentive schemes to encourage more early-stage investment into Australian SMEs.
One of these schemes, the Early Stage Venture Capital Limited Partnership (ESVCLP), was given tax exemption where it is a registered fund and its investors and investments comply with the limitations set out in the legislation.
It is important to recognise that tax exemption is a double edged sword, because while it means that neither income nor capital gains tax are payable on the returns through the fund it also means that capital losses incurred inside the fund are also exempt.
The Sustainable Enterprise Fund is on the Australian federal government List of ESVCLPs. It only permits investment by qualifying investors into qualifying investments, as such tax exemption on returns are an entitlement and tax evasion is not possible.
Follow-on Investment Pool
A scale benefit of the Sustainable Enterprise Fund is the need and opportunity for specific Follow-On Investment.
This Follow-On Investment Pool is a fully managed pool restricted only to invest in second or subsequent investment rounds with existing investees of the fund.
Scaling to a full $200M fund will give us insight into the performance of a large pool of investees and the standard investment term sheets to those investees provides first right of refusal for subsequent investment rounds.
Thus, the Follow-On Investment Pool represents a rare and enhanced risk to return investment opportunity, but these will only represent 5% to 10% of the fund so only limited opportunity will exist for investor participation.
You can register your interest in participating in the Follow-On Investment Pool here and Lellco will provide more detail to assist your assessment.
Investor Enquiry
If you would like to enquire about investing into the Sustainable Enterprise Fund please do so below.