There are a number of operating principles, which are embedded in VN-CP projects generally, that make CIDG completely different from the competition, namely:
1. Only one senior team member is salaried. The management team is incentivised by its equity participation – which ranks equally with all other investors in terms of dividend and capital entitlement – and is focused on making the service and site content as compelling as possible, thereby attracting as many paying subscribers as possible. Since all of the management team are equity participants, their incentive is to ensure a successful MBO, IPO or financial restructure at the optimal point for investors, i.e. to ensure that the best exit-multiple is achieved for investors whilst maintaining their EIS tax reliefs
2. No ongoing management fees are charged to CIDG or the Investors, as it is not a fund and the management team does not act or charge like one
3. No success fees are charged to CIDG or the Investors
4. The management team includes over 25 years experience in tax-efficient investment and funding structures. The Chairman is a Chartered Accountant and senior tax advisor, and the team also includes David Newman who was extensively involved with Yell and Mark Gilmore who has extensive experience in this sector, having previously started a successful multi-media web design and marketing agency from scratch
5. Complete financial transparency on all financial aspects of the project, providing investors with full access to details of development expenditure, revenue generation and with consultation on periodic equity distributions and disposal gains at exit.