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VCTs provider activity increases

16 January 2019

Venture Capital Trusts are seeking investors as the tax year end approaches, with Albion Capital announcing fund raising and Ingenious launching a new vehicle.

Investment manager Albion Capital is seeking to raise up to £36 million through top up offers for its six venture capital trusts.

The six VCTs include Albion Venture Capital Trust PLC, Albion Development VCT PLC, Albion Enterprise VCT PLC, Albion Technology & General VCT PLC, Crown Place VCT PLC and Kings Arms Yard VCT PLC. The portfolios have a combined value of around £400 million spread across 70 companies and Albion says it sees opportunities in the digital healthcare, automation, digital security and data analytics sectors.

Investments spread across all six portfolios will receive a monthly dividend yield of 5.5%, or 7.8% after tax relief. Investors who apply before 2pm on 28 February for the first £10 million of shares will qualify for a reduction in the offer costs; a 1% reduction for existing Albion investors and a 0.5% reduction for new investors.

Will Fraser-Allen, deputy managing partner at Albion Capital (pictured), said VCTs are attracting “sustained investor interest”, driven by a supportive climate for patient capital investing.

He commented: “The government has given its considerable backing to UK entrepreneurs driving high growth businesses, from measures announced in the Patient Capital Review to a more recent drive to encourage pension money into scale-up businesses. Against this backdrop, we see an encouraging number of opportunities for VCTs, in particular in high innovation areas such as B2B software and technology enabled services, including digital health.”

According to Fraser-Allen, these opportunities combined with a need for real income and capital growth, are likely to herald another healthy year for VCT fundraising in 2019.

New launch from Ingenious

Meanwhile, investment manager Ingenious has also announced the launch of Ingenious Vision VCT, which aims to raise an initial £10 million with a minimum subscription of £3 million. The group, which specialises in the media sector, will seek to pay a target dividend of 5p per share, starting from July 2022 with the potential to pay special dividends if investments generate a significant profit or make a substantial gain.

Ingenious will also offer investors an early investment incentive discount of 1.5% for those who apply before 31st January and 1% before 28th February.

Since the launch of its first Ingenious VCT in 2004, the investment manager has raised and managed over £75 million.

Will Harrison, managing director of media at Ingenious, said: “We believe that lifestyle changes, de-regulation and technological advances in the digital space have created excellent investment opportunities for knowledgeable investors. VCT fundraising levels continue to rise and we are very well placed to offer a unique chance to participate in an exciting and thriving area of the UK economy.”

 

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