Page 71 - Praetura EIS 2019 Information Memorandum

Risk Factors

Important: The attention of prospective Investors is Investment Risk or indeed that the Investee Company is unsupported and
drawn to each of the following risk factors. The Investee Companies will be small, unquoted so is unable to continue trading, losing the Fund its entire
companies and such investments carry a high degree of cost of investment.
Investors should be aware of the high-risk and illiquid risk with regards to both investment returns and liquidity.
nature of EIS investments that will be contained in There is no market, nor is there intended to be a market Investment Portfolio
the Fund portfolio. The below risk factors are not for the shares; as such, an investment in the Fund may be The performance of the Fund is dependent on the ability
intended to be exhaustive but are included to help illiquid. of the Fund Manager to identify appropriate Investee
you understand the risks of investing. Investors should Companies and on the ability of the Investee Companies
consider carefully whether an investment in the Fund You should not expect to receive dividend income from to perform in line with their respective business plans and
is suitable for them in light of the information in this these companies. It is not intended that any income or other market factors outside of our control or the Investee
document and their personal circumstances. If in any capital will be returned to Investors during the Three Year Companies’ control.
doubt whatsoever, an Investor should not subscribe. In EIS or SEIS Periods. After the initial holding period, it may
any case, it is strongly recommended that Investors seek still be difficult to realise the Shares or to obtain reliable The performance of the Investee Companies may be
the advice of an FCA authorised and regulated advisor information about their value as the market for shares adversely affected by global or local economic, political,
and /or tax advisor or other appropriately qualified in smaller companies is less liquid than that for shares in regulatory or other factors beyond the control of those
professional advisor. You should only invest money that larger companies, bringing with it potential difficulties in entities.
you can afford to leave for the medium to long term acquiring, valuing and disposing of such shares.
and/or are prepared to lose. In addition to other analytical tools, the investment
The value of investments held by the Fund may go down portfolio team may use financial models to evaluate
This document should not be considered as constituting as well as up and Investors may not receive back all or investment opportunities. The accuracy and effectiveness
legal, taxation or investment advice. Each party to any of the amount invested. Investment returns may vary of such models cannot be guaranteed. In all cases,
whom this document is made available must make substantially over time, and there can be no assurance that projections are only estimates of future results which
its own independent assessment of the Fund after Investors will achieve any particular rate of return. are based upon assumptions made at the time that the
making such investigations and taking such advice as projections are developed.
may be deemed necessary. In particular, any estimates, Diversification and Dilution
projections or opinions contained in this document When investing in a small fund this brings the potential Projections are inherently uncertain and subject to
involve significant elements of subjective judgement, risk that the Fund may either become overexposed to one factors beyond the control of the Manager and the
analysis and assumptions, and each recipient should Investment as it provides follow-on investment, or that it is Investee Company in question. The inaccuracy of
satisfy themselves in relation to such matters. heavily diluted by not participating in follow-on financing, certain assumptions, the failure to satisfy certain

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