Executive Summary - AAA Video Games EIS Fund Prepared for Cameron Sharpe of on 25 Dec 2017

AAA Video Games EIS Fund

EXECUTIVE SUMMARY

Investment Opportunity Sector Experience & Track Record

The Fund will invest in EIS qualifying businesses engaged in the
development and exploitation of Video Games for PC &
Console.
The games will licence established IP from high profile film or
TV franchises such as Aliens, James Bond or The Matrix. These
types of games are expected to benefit from having more
predictable sales forecasts due to the existing fan-base for such
franchises.
Sales proceeds from each game will flow directly to the Investee
Companies without any complex distribution arrangements
meaning Investor Returns are uncapped.
Daedalus Partners LLP is an award-winning Fund Manager with
a strong track record of investing in the sector. Daedalus has
invested in the development of more than 70 individual video
games since 2013 and has a large network of specialist contacts
across the industry.
Martin Alltimes will act as the lead Games Adviser to the Fund.
With over 20 years’ experience in the video games industry at
Sony Computer Entertainment, Eidos (now Square Enix), Disney
Interactive and The Imaginati, Martin has developed a number
of award-winning studios and a string of highly successful
games including:
 Toy Story 3 5.57m units sold

Capital Preservation  Narnia 3.07m units sold

Investment risk will be carefully managed by securing:  Pirates of the Caribbean 2.68m units sold

 Minimum guaranteed sales revenues from a major  Alice in Wonderland 0.94m units sold
games publisher (50%)
 Video game production tax credits (20%)
 EIS income tax relief (30%) Competitive Fee Structure
Initial Evaluation Fee 2%

PC & Console Video Game Market 1% payable for 3 years only

and deferred until Investors
Annual Monitoring Fee
The global video games market is growing at 4.8% p.a. and is have recovered 100% of their
expected to be worth over $90billion by 2020. PC and Console initial investment
games currently make up over 70% of global video game
Performance Fee to 20% above £1.10
revenues.
Manager 45% above £2.00

Revenues ($bn)
100
Fund Details
80
 Target Returns: £1.25 - £2.00 per £1.00 invested
60
 Minimum investment: £10,000
40
 Exit timeframe: after 3 years
20  Target fundraise: £8 million
0  Fund close date: 29 December 2017
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

PC Console Social/casual

For more information and details of how to apply please contact:

Nick Astaire nick.astaire@daedalus-partners.com Anna Long anna.long@daedalus-partners.com
020 3781 7376 020 3781 7377
9002017122593443901
 Executive Summary - AAA Video Games EIS Fund Prepared for Cameron Sharpe of on 25 Dec 2017

Benefits of the EIS

The Enterprise Investment Scheme (EIS) comprises a variety of tax benefits available to UK tax playing individuals, subject to
investments complying with the relevant conditions and requirements. The tax benefits include the following:

 30% income tax relief on qualifying investments of up to £1 million per tax year, with the ability to set off against liabilities
in the current or previous tax year

 Unlimited Capital Gains Tax deferral

 No Capital Gains Tax payable on gains realised on the disposal of the investment if held for a minimum of 3 years

 Tax relief on shares disposed of at a loss. This means that a 45% taxpayer with sufficient income in the year of disposal
may reduce their capital at risk to 38.5p per £1 invested

 100% relief from inheritance tax for investments held for more than 2 years, or immediately if the investment qualifies as
replacement property

Risks
Investment in the Fund involves a high degree of risk. Past performance is not a guide to future performance and may
not be repeated. The value of investments can go down as well as up and you could lose part or all of your capital
invested. You should consider the Fund to be a medium to long term investment and that the investments made by the
Fund are likely to be illiquid. Investors are strongly advised to seek independent legal, financial and tax advice before
making a decision to invest.

IMPORTANT INFORMATION

This Executive Summary is a summary of the information memorandum (Information Memorandum) for the AAA Video Games EIS
Fund (the Fund). This information does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe
for the Fund. Any decision in connection with an investment in the Fund should be made only on the basis of information contained
in the Information Memorandum. If you are in any doubt about the content of the Information Memorandum, and/or any action you
should take, you are strongly recommended to seek advice immediately from an independent financial adviser authorised under the
Financial Services and Markets Act 2000 who specialises in advising on opportunities of this type. Nothing in this document or the
Information Memorandum constitutes investment, tax, legal or other advice by Daedalus Partners LLP.

An investment in the Fund will not be suitable for all recipients of this document or the Information Memorandum. All statements of
opinion or belief contained in this Executive Summary or Information Memorandum and all views expressed, statements made and all
projections and forecasts regarding future events or the anticipated future performance of the Fund represent Daedalus Partners
LLP’s own assessment and interpretation of information available to them as at the date of the Information Memorandum. No
representation is made or assurance given, that such views, statements, projections, forecasts or anticipated future performance are
correct, attainable or complete or that the objectives of the Fund will be achieved.

The views, statements, projections, forecasts and anticipated future performance are based upon various assumptions and estimates
which involve significant elements of subjective judgment and analysis and which are subject to uncertainties and contingencies;
actual results could differ materially from those set forth in such projections, views, statements, forecasts and anticipated future
performance. Prospective investors must determine for themselves what reliance (if any) they should place on such statements, views,
or forecasts, and no responsibility is accepted by Daedalus Partners LLP in respect thereof. Issued and managed by Daedalus Partners
LLP, 59 Grosvenor Street, London W1K 3HZ which is authorised and regulated by the Financial Conduct Authority with firm reference
number 564221.

www.daedalus-partners.com

T: 020 3781 7375

9002017122593443902
Daedalus Partners LLP is authorised and regulated by the Financial Conduct Authority (FRN: 564221). Registered office address: 4 th Floor, 59-60 Grosvenor Street, London W1K 3HZ