This section provides an overview of the CVC Add+Venture ESVCLP Fund and is for informational purposes only.  It is not intended to replace the Information Memorandum or Application Form.

CVC Add+Venture ESVCLP Fund

What is the Investment Vehicle?
An Early Stage Venture Capital Limited Partnership

Who is the investment manager?
The ESVCLP is managed by Add+Venture Pty Ltd (“the Manager”), as Authorised Representative of CVC Managers Limited, Australian Financial Services Number Licence 277740, or its nominee.

Who is the General Partner?
CVC Add+Venture Partners LP, a venture capital management partnership.

What is the Investment Plan?
The Fund plans to make significant minority investments (10% – 30%) in venture capital / early expansion stage companies with less than A$50 million in assets. Add+Venture will focus on companies in the early and expansion phases of their lifecycle. The underlying investments made by the Fund will usually be interests in unlisted private Australian companies and comprise a mix of investment structures including ordinary shares, preference shares and hybrid instruments.

The investment strategy of the Fund is broad enough to evolve and expand to capture new innovations and trends that are considered eligible investments under the Venture Capital Act 2002 (Cth).

What are the Target Returns?
In excess of 25% (before fees and Fund expenses) per annum (internal rate of return). This is a target only. The Fund may not achieve this return.

Who is Eligible?
The Fund is only open to certain qualifying investors such as wholesale and significant investment visa (SIV) clients.

What is the Target Fund Size?
$20 million in Committed Capital.

What are the Fees?
See the Fees section

What is the Minimum Investment?
$100,000 unless otherwise approved by the Manager. 20% deposit is required upon application.

What is the Investment Period?
Commences on the First Closing Date and ends on the fifth anniversary of the Final Closing Date or such other date determined in accordance with the Investment Documents.

What is the Term of the Fund?
Five years from the end of the Investment Period (unless extended by the General Partner for up to two consecutive one-year periods) or such other date determined in accordance with the Investment Documents.

What Distributions will I receive?
Distributions from the Fund may be made at any time at the discretion of the General Partner. Distributions will be made pro rata to Capital Contributions and will be paid in the following order of priority to investors and the General Partner:

  • 100% to investors until they have each received (including tax credits) their drawn down Committed Capital plus a preferred return representing an internal rate of return of 10% pa on such draw downs.
  • Thereafter, 80% to investors and 20% to the General Partner.

The Manager and General Partner may accept lower fees or defer payment of fees for any period. Any deferral will in no way affect the right of the Manager or General Partner to receive the applicable fees.

Will I be eligible for any tax incentives?
An ESVCLP is a flow-through entity (it is not a taxing point). An ESVCLP provides investors with significant tax incentives for returns generated from Eligible Investments*.

  • Capital Gains tax exemption – Its investors pay no tax on their share of returns (capital or income) when an ESVCLP disposes of an Eligible Investment. However, an investor’s share of a loss arising from the disposal of an Eligible Investment is not deductible
  • Tax offset – Investors in the Fund will be entitled to a tax offset of up to 10% of the amount they invest in the Fund. Investors will become eligible for this offset on a pro-rata basis each time the Fund makes an investment.
*The fund is currently conditionally registered as an early stage venture capital limited partnership and further conditions will need to be met prior to being unconditionally registered
Tax treatment is only available once the fund becomes unconditionally registered

Who are Add+Venture's advisers?
Add+Venture’s Legal Advisor is MinterEllison.  Add+Venture’s Tax Advisor is BDO

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