Seneca Partners has closed its first Managed Storage EIS fund after it was fully subscribed and has opened a second fund to raise an additional £10m.
The second Seneca Managed Storage EIS fund will invest in another four storage sites and will use the same investment strategy and structure as the first fund, which raised £10m.
The fund offers investors the opportunity to invest in the managed storage sector while benefiting from the tax reliefs afforded by the Enterprise Investment Scheme.
Ian Battersby, business development director at Seneca Partners said: “With ‘renewables’ no longer a qualifying home for tax advantaged investments, the market expects a surge in demand which may not be fully satisfied this tax year.”
He added: “With the majority of new VCT [venture capital trust] offers also filling quickly in recent weeks, advisers and investors are moving quickly to ensure their requirements are fulfilled in the face of potential supply issues before 5 April.
"The month of March is set to be a very interesting time in the EIS market place.”
Seneca Partners has been invested in the storage sector since 2014.
The management team responsible for operating its portfolio of storage assets has identified the opportunity to acquire a number of freehold and/or long leasehold storage facilities and expand the estate of storage assets that it manages.
Jamie Perkins, partner at Westminster Wealth Management, said: "EIS investments can be a valuable addition to an individual’s portfolio, offering diversification to core investments and an attractive tax structure. However, this type of investment should be limited to a relatively small part of a portfolio and only for those investors who understand the level of risk involved and the lack of liquidity in such investments.
"Individuals who have already utilised their ISA allowances and annual/lifetime pension allowances may wish to review the use of tax efficient investments with an appropriate adviser."
To find out more about EIS and Seed Enterprise Investment Scheme click here.