Mobeus is planning to raise up to GBP80 million across four of its VCTs. Its the first time the company has looked to raise money since 2015 and may be the last for the next three years, according to the manager.
The new offer comes in a year which is expected to see up to GBP1 billion raised in VCTs – nearly double last tax year’s record raise of GBP542 million.
Mobeus paid a total of 311.5p per share across the four VCTs (since 2012 to June 2017), an average of 12.97p per share per VCT per year, which is well above the target.
This new offer gives investors an opportunity to access the potential growth of new investments (22 per cent of the portfolio) plus the security of a very established book of older, lower-risk businesses (78 per cent of the portfolio). The latter currently generates GBP9.38 million a year in interest payments and successful realisations since 2014 have produced cash gains of GBP99.4 million.
Wealth Club, the online investment service for High Net Worth Individuals (HNWIs), is the only outlet by which investors can apply for the Mobeus VCT online.
Commenting on the announcement Alex Davies, CEO and founder of Wealth Club, says: “It could be now or never – or at least not in quite some time – for VCT investors. These VCTs have been thumping out exceptional dividends year after year. Someone who invested GBP10,000 in 2010/11 in a linked offer would have received GBP7,983 in dividends so far. Quite remarkable when you consider the effective cost of the investment would have been just GBP7,000 after VCT income tax relief (currently 30 per cent).
“Because of the VCT rule changes in 2015, Mobeus has had to reinvent its strategy for new investments. But it took the changes in its stride: it managed to attract one of the most experienced growth investors in the industry, Trevor Hope, one of the key people behind the very successful ProVen VCTs. In the past 19 months it invested GBP31 million in nine new deals – only one other VCT secured more deals.
“If you want to combine the excitement of growth investing with the invaluable ‘safety net’ of an established portfolio of profitable and cash-generative companies, the Mobeus VCTs could be the ticket for new and seasoned VCT investors alike.”
