EIIS risks: what to understand before investing

By BVP Investments Ltd · Last reviewed 1 November 2026

Investing in the BVP 2026 EII Fund puts your capital at risk. Investments are in unquoted, early-stage and growing Irish companies, there is no early exit for investors, and there is no guarantee the fund will meet its objectives.

Key risks of the BVP 2026 EII Fund

Capital at risk. You may lose some or all of the capital invested. Performance depends on the portfolio companies.
No early exit. There is no early exit mechanism for investors, and a four-year minimum holding period applies. The expected term is 4 to 7 years.
Clawback. If an investee company makes an early exit, tax relief obtained on the portion invested in that company could be clawed back.
Illiquid, unquoted companies. EII investments are in unquoted, early-stage and growing companies, so they cannot easily be sold.
Targets are not guarantees. The 15% target IRR (including tax relief) and the 35% blended relief target are targets only. Actual relief depends on how each investee company is categorised.
Concentration. The fund invests in a limited number of companies (6–8), not a broad market.
Costs. A 3% upfront commission, realisation costs of up to 2% and a 20% performance fee above a 15% IRR hurdle reduce returns.
Tax position. Relief depends on having an income tax liability and on individual circumstances and Revenue rules. Gains on exit are subject to Capital Gains Tax.
Timing of relief. Tax certificates are expected within twelve months of completing the fund’s investments, and relief is claimed once you receive your certificate.
Approvals. Revenue approval of the fund is expected ahead of opening, and the Information Memorandum requires approval by the Department of Enterprise, Tourism and Employment.

The full list of risks is in the fund’s Information Memorandum, which should be read carefully. Past performance is not a reliable guide to future performance, and unrealised value in earlier funds is not guaranteed.

Frequently asked questions

Can I lose all my money in an EIIS fund?

Yes. You may lose some or all of the capital invested. Tax relief reduces the net cost of the investment but does not remove the risk.

Can I sell my EIIS investment early?

No. There is no early exit mechanism for investors, and a four-year minimum holding period applies.

What is clawback of EIIS tax relief?

If an investee company makes an early exit, tax relief obtained on the portion invested in that company could be clawed back.

Is the 15% target return guaranteed?

No. It is a target IRR including tax relief. There is no guarantee the fund will meet its objectives.

Where can I read all the risks?

In the BVP 2026 EII Fund Information Memorandum, which should be read carefully alongside independent tax advice.

Related guides

Capital at risk. Tax relief depends on individual circumstances and Revenue rules. Minimum 4-year holding period. EII investments are in unquoted, early-stage and growing companies and are illiquid. Past performance is no guarantee of future returns. This page is general information, not tax or investment advice.