How we value your Portfolio

Portfolios are valued at “fair value”

 

DSW Venture Capital LLP (trading as “DSW Ventures”) provides valuations of investments in securities in DSW Ventures portfolio companies solely for members of its investment network. The valuations are provided to members for informational purposes only and do not represent any advice or recommendation with respect to such securities and do not represent any offer or solicitation to buy or sell or subscribe for such securities.

The “Current Valuation” shown on each investor’s Portfolio page on our online investor platform at https://phdinvestors.co.uk reflects the fair value, in aggregate, of their completed investments. The Portfolio value does not reflect the impacts of any tax reliefs that may be available or any fees that may be incurred if the investments were sold.

 

How “fair value” is assessed

 

The ”fair value” of portfolio investments is assessed in accordance with the International Private Equity and Venture Capital Valuation Guidelines, using the following specific bases:

  • Unless there is exceptional and manifest evidence to the contrary, it is assumed that:
    1. in the twelve months following any new investment, the fair value of an investment will be at cost; and
    2. in the twelve months following a further issuance of securities of a particular class is made for cash by a portfolio company, the fair value of existing securities will be assumed to be equivalent to the price at which the most recent issuance takes place.
  • If a portfolio company is wound up or indicates an intention to be wound up or otherwise ceases trading, the fair value of its securities will be nil unless there is exceptional or manifest evidence to the contrary.
  • Otherwise, fair value will be based on DSW Ventures’ judgement as to which, in each circumstance, is the most appropriate basis or combination of bases on which to value the investment. Such bases are stated in each individual portfolio company valuation.
  • No discount or other adjustment is made for the minority status of any shareholding.

Fair value is assessed at the end of March and September each year.

As DSW Ventures portfolio companies are early-stage enterprises and there is no readily available market in which to trade them, there will be a strong element of subjective judgement applied by DSW Ventures not just in determining which valuation basis or bases to apply, but also in determining which assumptions and estimates should be made. They may well differ from the bases, assumptions, or estimates which other parties or the investors themselves might make.

 

The impact of taxation is excluded

 

The levels and bases of taxation assumed in the information are indicative, are not specific to any one investor, may show the maximum possible tax relief, and may change. They do not represent tax advice and should not be relied upon for tax purposes. The amount of EIS tax relief received or potentially receivable will vary from investor to investor and may be nil.

 

Potential costs of individual investors are excluded

 

Portfolio valuations do not take account of any fees levied on portfolio companies by DSW Ventures or costs to investors. The level of costs incurred by an investor and of fees payable to DSW Ventures may vary from investor to investor and over time.

 

Other considerations

 

Investment valuations prepared by DSW Ventures are solely for the use of underlying investors in DSW Ventures portfolio companies
The valuations, and any information and material regarding such valuations (the “information”) are provided for informational purposes only and are not to be used or considered as an offer or a solicitation to sell or an offer or solicitation to buy or subscribe for securities or other financial instruments or any advice or recommendation with respect to such securities or other financial instruments.

DSW Ventures does not make any representation or warranty or guarantee as to the completeness, accuracy, timeliness or suitability of any part of the information provided or that it is free from error. DSW Ventures does not accept any liability (whether in contract, tort or otherwise howsoever and whether they have been negligent) for any loss or damage (including, without limitation, loss of profit), which may arise directly or indirectly from use of or reliance on such information. Whilst the information provided has been obtained from sources believed to be reliable, DSW Ventures does not attest to its accuracy or completeness. DSW Ventures reserves the right to change any source without restriction or notice. The values quoted for any particular investment are indicative only and are subject to change.

Past performance should not be taken as an indication or guarantee of future performance and no representation or warranty, express or implied, is made regarding future performance. Opinions and/or estimates reflect a judgment at the original date of publication by us and are subject to change without notice. The price, value and income from any of the securities or financial instruments mentioned can fall as well as rise.

The valuations made by DSW ventures are not audited and should only be used as a general guide to the fair value of your portfolio and may change over time. They were prepared based on information and assumptions as at a specific point in time which will may be subject to subsequent changes. Given the nature of investments made by
DSW Ventures, these valuations are based on unaudited information provided by the management of portfolio companies, which may well be subject to error, omission and subsequent revision.