EIS investment opportunities are available through a range of channels, from large managed funds to direct company investment. The right channel depends on your investment size, your appetite for direct company involvement, and the time you can commit to research and monitoring.
EIS fund managers
The most straightforward route for investors deploying significant capital is an EIS fund managed by a professional investment manager. EIS funds pool capital from multiple investors and deploy across a portfolio of qualifying companies. The investor receives a single investment and a diversified portfolio with professional oversight. Key EIS fund managers in the UK include Octopus Ventures, Mercia, Parkwalk, British Business Investments, and numerous boutique managers specialising in specific sectors.
When evaluating EIS fund managers, look at: track record (actual returns on realised investments, not theoretical models), portfolio size (a larger number of companies typically means better diversification), sector expertise (do they have genuine domain knowledge in the sectors they invest?), and fees (typical structures are 2% per year management fee plus 20% carry above a hurdle).
EIS platforms and marketplaces
Several platforms specifically aggregate EIS opportunities for direct investors. These include Wealth Club, Puma Investments, and various boutique platforms that curate deals for high net worth investor audiences. The quality of curation varies — the best platforms do meaningful due diligence; others are largely distribution channels for company fundraises.
Direct investment
For investors with strong domain knowledge or existing relationships with founders, direct EIS investment can offer better economics than fund investment — no management fee, no performance fee, and the ability to concentrate in high-conviction opportunities rather than accepting a diversified portfolio. The trade-off is a higher due diligence burden and less diversification.
Working with an IFA
A financial adviser who specialises in EIS can provide access to curated deal flow, help you structure investments within a broader tax planning strategy, and provide ongoing advice on the portfolio. For investors deploying significant capital — above £250,000 — working with a specialist IFA is strongly recommended.
Questions to ask before any EIS investment
- Has HMRC Advance Assurance been received?
- What is the company's current revenue and growth rate?
- Who else is investing, and at what valuation?
- What is the expected use of proceeds and the next milestone?
- What is the realistic exit scenario and timeline?
- What is the management team's track record?
Also Read
What is EIS? The complete guide →Also Read
EIS due diligence checklist →