20 November 2018 - VCT fund raising has been hotting up this month, with new offers coming thick and fast. The good news is that we've been able to negotiate more discounts for our clients – but hurry: some expire at the end of November:
Calculus has been investing in smaller companies for 20 years, having launched the UK's first Enterprise Investment Scheme in 1999. The company has managed VCTs since 2005 and is looking to raise £10 million, with a £5 million over-allotment facility. The aim is to pay a regular dividend of 4.5% of NAV from the summer of 2019.
The VCT invests in 25-30 holdings and the monies raised will be used to invest in new companies, as well as provide further funding to existing holdings. Calculus looks for opportunities across an array of sectors, including fintech, business services, healthcare, technology and manufacturing.
0% initial charge available until the end of 2018
The initial charge on the Calculus VCT has just been reduced from 5% to 0%, meaning savings of at £250 on a minimum investment of £5,000. The 0% offer expires on the 31 December 2018.
Downing has announced it is raising money for not one, but two VCTs.
The first is Downing 4 Generalist VCT, which has a £20.3 million offer for subscription and a £20.3 million over-allotment facility. This VCT invests in companies across a number of sectors including technology, healthcare, education, manufacturing, recruitment, e-commerce, construction, travel and leisure.
The second is Downing 4 Healthcare VCT, which has a £10.2 million offer for subscription, with a £20.3 over-allotment facility. This more specialist VCT invests in healthcare e-commerce, drug discovery and drug development technology companies.
Both VCTs will target a 4% annual dividend from the summer of 2020 onwards. Please note this is a target and not guaranteed.
Reduced initial charge & early-bird discount for Chelsea clients
Chelsea clients can benefit from a reduced initial charge, paying 2.75% instead of the standard 5%. There is an additional early-bird discount, which will further reduce the initial charge to 1.75% for those who invest prior to 28 December 2018. This reduces the cost of the minimum investment of £5,000 from £250 to £87.50. It is also possible to invest as little as £500 a month into these VCTs.
Triple Point VCT are raising £15 million, with an additional £15 million over-allotment facility, into the “venture” share class.
This is a generalist VCT investing in around 20-plus companies. It looks to invest into 'business to business' companies that can solve corporate issues and, from the resulting contracts, have significant room for growth. The strategy is targeting distributions of 3 pence per share in the summer of 2020 and 2021, with 5p thereafter.
Hurry to take advantage of reduced initial charges
Early bird investors will benefit from a reduced initial charge,paying 2% instead of the standard 5.5% on applications submitted prior to 30 November 2018. After this date, Chelsea clients will still pay a reduced, but slightly higher initial charge of 2.5%.
Pembroke VCT is one of the youngest generalist VCTs around, having launched just five years ago. It has a preference for companies that are already producing profits and invests in unquoted companies in four main sectors: apparel and accessories, health & fitness, hospitality and media & technology.
The VCT is seeking to raise £20 million, with an over allotment facility for an additional £20million. The money raised will be used to invest in both existing holdings and new opportunities.
Time is running out for the special early-bird Chelsea discount
There is a special early-bird discount of 1.5% in the form of extra shares on the first £10m raised or 30 November 2018 (whichever comes first) and 1% thereafter. The minimum investment is £3,000.
Please contact Chelsea for an application form or download one from our website. To benefit from the Chelsea discount, please send all applications to our offices.
For more information on VCTs, including the associated investment risks, please read our free guide.
To keep up to date on VCT offers, visit our webpage.
Please be aware that VCTs are long-term, highly illiquid investments. VCTs usually invest in small, unquoted companies and carry a greater risk than many other forms of investment. In addition, the level of charges is often greater than unit trusts and OEICs. Past performance is not necessarily a guide to the future. The value of investments, and the income from them, can fall as well as rise and you may not get back the amount invested. Chelsea Financial Services offers an execution-only service. If you require investment advice you should contact an expert adviser. Tax relief is restricted to total VCT investments for each investor up to £200,000 per tax year. Tax is subject to statutory change and the value of tax relief (if any) will depend upon individual circumstances.