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In a recent interview with IFA/GBI magazine, Parkwalk CEO Moray Wright discusses the most significant growth opportunities for investment, the most common risks for investors and explains Parkwalk’s investment strategy.

Read the full interview on IFA magazine.

What tax-efficient schemes does your company work with, and how do you offer a unique/compelling approach for advisers? 

Parkwalk is the largest growth EIS fund manager, backing world-changing technologies emerging from the UK’s leading universities and research institutions. With £500m of assets under management, we have invested in over 160 companies across the Parkwalk Opportunities and Knowledge Intensive EIS Funds, as well as the award-winning enterprise and innovation funds that we manage for the Universities of Cambridge, Oxford, Bristol and Imperial College. Parkwalk invests in businesses creating solutions to real-world challenges, with IP-protected innovations, across a range of sectors including life sciences, AI, quantum computing, advanced materials, genomics, cleantech, future of mobility, medtech and big data.

What do you see as the biggest risks for investors?

EIS by nature is a high-risk investment, and investors should be fully aware of the risks before they invest with us or any EIS provider. EIS is also fairly illiquid by nature, and has a medium-long term holding period, which at Parkwalk is a target of 4-8 years. The risks are somewhat mitigated, however, by the five associated tax reliefs available under the Enterprise Investment Scheme, including loss relief where applicable.

Where and in which types of companies are you seeing the biggest growth opportunities?

We are seeing a lot of high-quality deal flow in the university spin-out sector, with lower valuations providing some interesting opportunities from our university network and co-investor relationships. Our investment strategy is sector agnostic, but we are seeing growth in Quantum Computing, which will continue to flourish as a sector in 2024, a year which may mark the first real demonstration of quantum advantage – which will be a truly catalysing milestone for the industry.

We believe that Life Sciences will continue to thrive, as computing and biology continue to come together to deliver ever greater insight and outcomes, including the use of AI in expediting clinical trials and supporting drug discovery processes. Digital Health will see further adoption of clinical technologies that can improve productivity and reduce patient waiting times, and we are also seeing growth opportunities in MedTech.  

The disruptive technologies mentioned above are all sectors that our Knowledge Intensive EIS Fund invests in. Our Knowledge Intensive EIS Fund III offers investors the opportunity to invest in companies formed to commercialise scientific and technological discoveries. The Fund can help with income tax relief for 2023/24 and carry back to 2022/23 tax years, subject to personal tax circumstances. Our Knowledge Intensive EIS Fund III also helps with greater simplicity of administration, with all initial income tax relief linked to the Fund close date (KI Fund III will close on the 28th March 2024), and claimed via just one EIS5 certificate. Once all investments have been made, investors can claim tax relief via one EIS5 certificate.

*Subject to personal tax circumstances, please see our risk warning.

For more information about our Knowledge Intensive EIS Fund III, please visit our website or contact [email protected].

Parkwalk Advisors Limited (Parkwalk) is authorised and regulated by the Financial Conduct Authority: FRN 502237. Investments referred to in this news article are not suitable for all investors. Capital is at risk and investors may not get back the full amount invested. Any investment in a Parkwalk product must only be made on the basis of the terms of the full Information Memorandum. Tax treatment depends on the individual circumstances of each investor. Parkwalk is not able to provide advice as to the suitability of investing in any product. Past performance is not a reliable indicator of future results. This financial promotion was approved on 28/02/2024