Capital for Colleagues invests in, advises and supports companies that are, or want to become, employee owned businesses (“EOBs”). The Company is one of the few vehicles providing investors with exposure to the dynamic and rapidly growing EOB sector.
Employee ownership is a proven, successful business model, which is recognised to improve productivity and create wealth whilst providing a stable employment environment and the possibility of attractive commercial returns for investors.
The best known example of employee ownership in the UK is the John Lewis Partnership. The Directors of Capital for Colleagues are delighted to announce that the John Lewis Partnership is demonstrating its support for employee ownership and the Company’s activities in the EOB sector by facilitating the issue of John Lewis Vouchers to qualifying investors in the Crowdfunding.
Independent research shows that employee participation delivers superior business performance relative to more traditional ownership structures. Moreover, since the start of 2003, shares in quoted employee owned businesses have outperformed the FTSE All Share by an average of almost 13 per cent. per annum. Successive UK Governments have also pledged their support to the EOB sector, with specific tax incentives being made available to EOBs.
Since its formation in October 2013, Capital for Colleagues has invested in more than 20 EOBs, in sectors ranging from civil engineering to accountancy, establishing itself as a leading body within the EOB sector. The Directors’ aim is that investments made by the Company will have a reasonable prospect of an exit, or be expected to return capital, and an attractive dividend or profit stream.
Capital for Colleagues was admitted to trading on the ISDX Growth Market in March 2014; the Directors currently intend that the Company will move to AIM at an appropriate time.