Octopus Investments has launched a GBP20 million fundraising by the Octopus Apollo Venture Capital Trust (Apollo VCT).
This is the third VCT fundraise launched by Octopus in two months. On 1 September, Octopus launched a GBP20 million joint fundraise for its AIM VCTs and later that month opened a GBP50 million joint fundraise for the Titan VCTs, which focus on investment in early stage companies.
The latest fundraise has been launched in order to help Octopus continue to meet some of the different appetites of VCT investors. While all VCTs focus on investment in smaller companies, unlike some other VCTs, Apollo VCT invests in established small companies that require growth capital.
Examples of companies within its portfolio include Countrywide Healthcare Supplies, a specialist supplier of healthcare and cleaning products and equipment to the care home industry; and Vista Retail Support, which provides support services for electronic point of sale equipment such as tills and chip & pin devices to some of the best-known high street retailers.
Octopus launched the first Apollo VCT back in 2006 for those investors who, while recognising that there are risks associated with investing in smaller companies, want their investment manager to target modest but predictable returns. In the past it has proved to be popular with those investors aiming to preserve the value of their investment, rather than seeking growth.
In September the Octopus AIM VCTs raised over 40 per cent of their capacity within just one month of launching, and the latest figures from HMRC state that investment into VCTs reached its highest levels for eight years last year, with VCTs raising GBP440 million from investors in 2013-14, an increase of 10 per cent on the previous tax year. Octopus now manages a suite of VCTs, each targeting a different investment mandate, in order to reflect the varying requirements of VCT investors.
Paul Latham, managing director at Octopus Investments, says: “The launch of this latest fundraise is reflective of the interest and appetite we are seeing from advisers and their clients for access to VCTs and the range of benefits they can provide for investors. Of course, there is no such thing as the ‘right’ VCT for everyone. People have different views on investment and varying attitudes to risk. At Octopus, we provide a range of VCTs so that those looking to use them as a planning tool can ensure that their VCT is aligned with their own personal investment approach. As the latest figures have demonstrated, VCTs are proving to be increasingly popular investment tools especially in the face of recent changes in pensions legislation, but investors use them for a range of different planning requirements. In opening another VCT for investment, we are providing potential VCT investors with further choice in the market, helping them to ensure they can pick the right product for their needs.”
