Albion Capital is looking to raise up to £45 million through top up offers for five of its venture capital trusts.
The fundraising targets the following amounts across the Albion VCT range:
Albion Technology & General VCT PLC £14m
Kings Arms Yard VCT PLC £12m
Albion Development VCT PLC £7m
Albion Enterprise VCT PLC £6m
Crown Place VCT PLC £6m
The top up offers reflect Albion’s confidence in a strong pipeline of investment opportunities in long-term structural growth opportunities in areas such as software and healthcare including data analytics, digital health, fintech and digital security.
Albion Capital has a 25-year track record of investing in software and healthcare and its portfolios have a combined value of approximately £377 million*, diversified across approximately 70 businesses.
The investment programme has seen £66m invested across the VCT range in 36 new and existing high growth businesses in the two years to 31 December 2020. Recent investments include eTrading technology company TransFICC, challenger credit reference agency Credit Kudos and marine and automotive insurtech Concirrus.
Commenting, Will Fraser-Allen, managing partner at Albion Capital, says: “The COVID-19 pandemic has thrown up exceptional challenges to the way we live and work, and precipitated the dramatic acceleration of structural changes already underway in our economy. Against this backdrop, our portfolio companies have held up well and benefit from considerable advantages that will enable them to prosper in the ‘new normal’.
“Many of our highly promising growth and technology investments are capital efficient, truly global in terms of customer base, with multi-year contracts with blue chip enterprises, and often provide mission critical software, such as cyber security protection. We are excited to offer investors exposure to these pioneering sectors, as well as the opportunity to support the vibrant and ambitious British companies that can drive our economic recovery.”
The offers opened on 5 January 2021 and are expected to close no later than 30 September 2021. Each Company may close its offer earlier than the date stated or may extend to 4 January 2022 .
Investors who apply before 26 February 2021 for the first £10 million of shares will be entitled to an “early bird” reduction in the offer costs. Existing Albion investors will receive a 1.0 per cent reduction and new investors will receive a 0.5 per cent reduction.
To 30 September 2020, the Albion VCTs (excluding Albion Venture Capital Trust) returned an average of 6.5% p.a. over 10 years, 7.0% p.a. over 5 years and 7.3% p.a. over 3 years** excluding tax relief. Average annual running costs for the VCTs are 2.5 per cent. All five VCTs have an annual (tax-free) dividend target of 5% of net asset value.
*As at 30 September 2020.
**Performance of the VCTs over 3, 5 and 10 years to 30 September 2020, being the cumulative return for the period comprising dividends paid and change in net asset value. This does not include tax relief. Past performance is not a guide to future performance.
