Understanding Secondaries Markets
Picture a bustling marketplace. Instead of fruit and veg, you’re buying and selling slices of private companies. That’s the secondary market in a nutshell.
- You buy shares from an existing investor, not the company directly.
- Liquidity is better than holding private shares to IPO or sale.
- Prices can be more stable if the market’s deep enough.
Why consider secondaries in your equity investment UK journey?
Liquidity solutions
You often escape the long lock-in periods of primary deals.Market price insights
You see real valuations, not just pitch decks.Diversification
You can spread risk across different companies, vintages, and sectors.
However, not every platform is alike. Many large firms focus on institutions. Coller Capital, for instance, is a specialist in secondary private capital. They’ve raised record funds and boast a 35-year track record. Impressive, yes. But they cater mostly to institutional budgets. And fees? They apply. If you’re an individual or SME, those charges add up.
Decoding SEIS and EIS Schemes
Now, flip to the other side. The Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS) are government-backed. They offer juicy tax perks if you back early-stage UK startups.
Here’s the lowdown on SEIS/EIS:
- Income tax relief – Up to 50% for SEIS, 30% for EIS.
- Capital gains relief – Potentially tax-free if held over three years.
- Loss relief – Offsets losses against income tax.
- Inheritance tax relief – After two years, shares may qualify for 100% relief.
Sounds great, right? But there are catches:
• High risk – Early-stage firms can fold.
• Illiquidity – You’re locked in for several years.
• Complex compliance – Plenty of paperwork and strict eligibility rules.
Despite that, SEIS/EIS remain staples in the equity investment UK toolkit. They appeal to investors chasing tax-efficient growth and willing to back innovation.
Key Differences: Secondaries vs SEIS/EIS
Comparing these routes is like choosing between a running sprint and a marathon.
| Feature | Secondaries Markets | SEIS/EIS Schemes |
|---|---|---|
| Entry Point | Purchase existing shares | Fund a startup at seed or growth stage |
| Liquidity | Generally higher (subject to demand) | Low – locked for 3+ years |
| Tax Benefits | Standard capital gains (no extra perks) | Generous income and capital gains relief |
| Risk Profile | Mitigated by market pricing | High – early-stage failures |
| Minimum Investment | Varies; often higher for institutional deals | From £500 – accessible to many investors |
| Fees | Platform and transaction fees apply | Advisory and legal fees |
But here’s the kicker. Many secondaries platforms charge hefty fees. And with SEIS/EIS, the compliance maze can scare you off.
Enter Oriel IPO. They blend the best of both worlds.
Why Oriel IPO Stands Out
Here’s the bit where we show why Oriel IPO might just be your best mate in the equity investment UK race.
Commission-free funding
You heard right. No hidden charges eating into your returns.Curated, tax-efficient options
We spotlight SEIS/EIS deals that tick all the boxes – minus the guesswork.Educational resources
From webinars to Maggie’s AutoBlog, you get crisp, AI-driven blog guides. No fluff.Subscription-based model
Transparent tiers. No surprise bills. You know exactly what you’re paying for.Community support
Join like-minded SMEs and angel investors. Share tips, mentor new founders, swap war stories.
Strengths vs Weaknesses
– Strength: Commission-free. Aligned interests.
– Weakness: Not FCA-regulated – so we can’t give bespoke advice.
But we’re honest about that. We link you to regulated partners for tailored counsel. You remain in control.
Real-World Example
Imagine you spot a tech startup with a promising AI chatbot. On a big secondaries platform, you’d pay 2% fee to access a small slice. On Oriel IPO, it’s commission-free. You get straight to the share price, backed by SEIS relief. Your net cost after tax relief? Almost half. Win-win.
Practical Steps to Choose Your Route
Still not sure which path suits you? Here’s a quick checklist:
Define your goal
Are you chasing quick liquidity or long-term tax breaks?Assess your risk appetite
Startups can fail. Secondary shares can fluctuate.Crunch the numbers
Factor in net return after fees and tax relief.Check platform credentials
Look for commission-free models, transparent fees, and educational support.Dive in
Start small. Learn through Maggie’s AutoBlog content. Build confidence.
And remember, whether you lean to secondaries or SEIS/EIS, diversification is key. Mix both for a balanced equity investment UK strategy.
Conclusion: Making the Right Move
Choosing between secondary markets and SEIS/EIS doesn’t have to feel like guesswork. You’ve seen the pros and cons side by side. You’ve met a platform that fuses both routes – Oriel IPO. Commission-free. Tax-savvy. Educational. All in one.
Ready to take the next step? Let’s make equity investment UK simpler, fairer and a touch more fun.
