UK venture capital investor Albion Ventures has held the early close of the Albion VCTs Prospectus Top Up Offers after raising GBP36 million across its six venture capital trusts.
The Offers targeted a monthly tax-free income of around 6 per cent p.a. (for investors who invested equally across all Offers), equivalent to approximately 8.5 per cent on the net cost of investment after up-front tax relief at 30 per cent. Investors in the Offers also have the option to boost their capital growth by participating in the dividend reinvestment schemes (DRIS), under which dividends are reinvested in the form of new shares in the Albion VCTs.
The early close follows a recent survey among financial advisers commissioned by Albion, which revealed that more than half (54 per cent) of IFAs expected to see levels of client demand for VCTs rising over the next year, up from under a third (32 per cent) last year.
Separate research from the Association of Investment Companies (AIC) showed that three quarters of VCT managers have already reported increased investor interest from private investors in light of the forthcoming pension rule changes. Indeed two-thirds of VCT managers said that the pension rule changes give them the greatest cause for optimism in 2016.
Patrick Reeve (pictured), Managing Partner at Albion Ventures, says: “We are delighted to announce the early close of our Offers at GBP36 million, which was extended from our original target of GBP25.5million earlier this year. The level of demand underlines our investment track record built up over 20 years of investing in small, high growth companies.
“We had a particular rise in demand from investors who are looking to broaden their retirement portfolio following recent pension reforms. This has included many younger professionals who regard VCTs as a long term savings plan.”
Since the business was founded in 1996, Albion VCTs have paid out dividends to shareholders every year, totalling in excess of GBP165 million.
The Offers provided investors with immediate exposure to six mature Albion VCTs, with a combined net asset value of over GBP270 million in a diversified portfolio of around 60 businesses. These range from stable asset-backed businesses to growth and technology companies.
The Offers opened on 17 November 2015 and were scheduled to close on 30 September 2016.
