Establishing a fund is a complex and time-consuming process, with the legal aspects only one piece of the puzzle. There are two common fund structures for equity funds; limited partnerships and open-ended corporate structures. Traditional, institutionally backed Venture Capital funds are virtually all limited partnerships. In the past few years, most other new equity funds including Angel funds, non-institutionally backed venture funds, seed and early stage funds and many mutual funds have predominately been open-ended, corporate structures. Set up as an LLC (Limited Liability Company) this enables a group of investors to invest collectively in another entity.
Governments also need expert guidance in how to set up and establish grant, loan or venture funds and to maximise their effectiveness by leveraging private sector engagement. Nelson has worked with several regional and national government bodies to recommend appropriate fund structures, management methodologies, sources for funding for the fund and appropriate interest charges, drawing on comparative evidence from public and private funds.
As a qualified UK Financial Services Authority fund manager, Nelson developed and managed two early stage investment funds – the East of Scotland Investment Fund & the Strathclyde Investment Fund. These funds provided support to over 50 Scottish SMEs. In addition, Nelson was a non-executive director for the Genomia Seedcorn Investment Fund which targets the research outputs of the animal and life sciences sector, the former locum Fund Manager for Clyde Blowers Capital IM LLP, a £250 million venture fund and is presently a member of the Investment Advisory Board to the UK governments £100m Co-Investment Fund.