FREQUENTLY ASKED QUESTIONS

  1. Why invest in BES?
  2. What is the minimum or maximum I can invest?
  3. How do I claim my tax relief?
  4. How much will my investment cost me?
  5. How do I subscribe to the 2011 BES opportunity?
  6. What are the risks associated with BES Investment?
  7. What is the term of my investment?
  8. Who is the Manager of the private placement?
  9. Will I receive performance updates on my investment?
  10. What is the exit process for my Investment?

Why invest in BES?

The 2007 Finance Act significantly strengthened the Business Expansion Scheme:

Investors can qualify for tax relief on investments up to a maximum of €150,000 meaning BES can fully satisfy most taxpayer's total shelter needs;

  • BES is one of the few sources of Total-Income-Relief available.
  • BES relief is available in full, in the year in which the investment is made.
  • Funds are only committed for 5 years.
  • The Investor's exposure is limited to the up-front equity investment.
  • The Investor does not need to have recurring tax exposure for a number of years.
  • The increase to €2m per Investee Company allows more resources into structuring deals.

What is the minimum or maximum I can invest?

The minimum amount of a subscription is €5,000 and subscriptions thereafter must be made in multiples of €1,000 up to a maximum of €150,000.

How do I claim my tax relief?

Tax relief on an investment should be available to the individual for the tax year ending 31st December 2011 at the claimant's marginal rate of Income Tax.

Each Investor must make their own claim for tax relief on receipt of Form RICT 3 from the company.

How much will my investment cost me?

A commission of 3.5% will be payable by Investors on the amount of and in addition to their subscriptions at the date of application.

How do I subscribe to the 2011 BES opportunity?

Please contact a member of our BES team who will be happy to advise how to subscribe to the investment company.

What are the risks associated with BES Investment?

As with any equity investment, Investors are at risk of the possible loss of the full amount of equity invested in any individual Investee Company, should that company suffer commercial failure during the period of investment.

Even in successful private companies (i.e. unquoted), there may be limitations on the saleability of their shares.

Taxation relief granted to Investors under the provisions of the Business Expansion Scheme may be lost if an Investee Company is not or ceases to be a Qualifying Company engaged in a Qualifying Trade.

What is the term of my investment?

Five years from the date on which the final shares are issued.

Who is the Manager of the private placement?

Pinnacle Capital Partners Ltd. will manage the private placement investment in tandem with the 2010 Pinnacle BES Fund and the investment will be subject to the same investment terms and pre-conditions of previous Pinnacle Funds.

Will I receive performance updates on my investment?

Throughout the life of the Fund the Manager will prepare and circulate half yearly performance reports for the period ending 30th June and 31st December. This document will provide feedback in a consistent format and will outline key financial and operational information on each investment.

Audited Financial Statements for the Fund to 31st October of each year will be made available to Investors as soon as is practical after the year end.

What is the exit process for my Investment?

Pinnacle will co-ordinate the exit of the investment after expiration of the Minimum Investment Period.

For these BES investments, it is anticipated that the wind farm will be sold on the open market at the end of the minimum investment period.