Octopus Investments has reached its half-way milestone (GBP60 million) in under two months for its Octopus Titan VCT. This is the fastest that Titan has raised this sum, with rising numbers of online applications helping to drive this trend.
This year Octopus is targeting another GBP120 million fundraise for its flagship VCT. This follows last year’s record breaking fundraise when Titan raised a total of GBP200 million.
Titan offers investors, comfortable with the risks of smaller company investing, attractive tax incentives that accompany a VCT and access to a well-established and diverse portfolio of more than 65 potential game-changing smaller companies. Titan was an early investor in Zoopla Property Group, the first VCT backed business to reach a GBP1 billion valuation, alongside other well-known names such as Secret Escapes and the snack company Graze.
Paul Latham, Managing Director at Octopus Investments, says: “Titan continues to prove extremely popular with investors, many of whom are looking for a tax efficient home for their money following rule changes for buy-to-let and to the pension lifetime allowance. With some industry players still adapting to last November’s rule changes or opting not to fundraise, it also looks likely that capacity in the market will be reduced this year. Yet with sustained investor demand for VCTs, there is a good chance that Titan will close well ahead of time.”
Jo Oliver, Fund Manager for Octopus Titan VCT, adds: “Titan has been investing in early stage innovative companies since it launched ten years ago. In that time the UK has continued to build its reputation for creating truly world class companies and developed a thriving eco-system of talented entrepreneurs. The volume and quality of investment opportunities shows no sign of slowing.”
VCTs offer investors up to 30 per cent upfront income tax relief providing that shares in the VCT are held for at least five years, as well as tax-free dividends and tax-free growth.
Alex Davies, Chief Executive of WealthClub, says: “Pension changes, restrictions on buy to let, and the ever-increasing dividend tax, mean VCTs are one of the last relatively simple and tax efficient places for wealthier investors to put their money. All the indications are that capacity is going to be tight compared with demand this year. Therefore, investors who spot something they like should consider investing now whilst it is still available. For those looking to back tomorrow’s winners, Octopus Titan could make an excellent choice.”
The share offer for Titan is open until 12 September 2019 but will close earlier if fully subscribed. The minimum investment is GBP3,000 while the maximum investment qualifying for tax relief is GBP200,000.
