Albion Capital , the independent investment manager, is seeking to raise up to £38 mln through top-up offers for its six venture capital trusts (VCTs).
The fundraising targets £8 mln for Kings Arms Yard VCT and £6 mln across each of Albion’s other VCTs.
Investments spread across all six portfolios will receive a monthly dividend, with a yield of approximately 5.6 per cent, or 8.0 per cent after tax relief – a potentially attractive income source in the current low interest rate environment.
Investors who apply before 2pm on 31 October 2017 for the first £10 mln of shares will be entitled to an “early bird” reduction in the offer costs, the firm said. Existing Albion investors will receive a 1 pct reduction, and new investors a 0.5 pct reduction.
The offers provide exposure to balanced portfolios with a combined value of around £340 mln, diversified across approximately 60 businesses, Albion Capital said. It added their launch reflects Albion’s confidence in an exciting pipeline of investment opportunities in sectors with long-term growth potential.
The VCTs will invest in growth companies with particularly strong opportunities, in line with Albion’s sector specialisms, including digital healthcare, automation, digital security and data analytics.
A strong investment programme has seen the VCTs invest £43 mln since January 2016.
Recently backed businesses include Locum’s Nest, an app which is revolutionising the way NHS trusts recruit locum doctors, G.Network, an alternative broadband provider delivering high speed internet to London’s SMEs, and Panaseer, a cyber security firm using big data technologies to provide security intelligence to blue chip companies.
Will Fraser-Allen, deputy managing partner at Albion Capital, says: “VCTs have broadened in appeal in recent years as investors recognise their potential for delivering long-term capital growth and income. In this unprecedented low interest rate world, investors are realising the benefits of diversified venture portfolios and we anticipate healthy demand for our latest offers.
“VCTs play a vital role in supporting the UK’s young, ambitious businesses, delivering growth capital to the bedrock of the economy. We have a robust pipeline of potential investments and look forward to partnering with more businesses that we believe can create lasting value.”
The offers opened on 6 September 2017 and are expected to close no later than 24 August 2018 unless capacity is met sooner, Albion Capital said.