Octopus Investments is to utilise the GBP80 million over allotment facility in its current fundraise for the UK’s largest VCT, Octopus Titan VCT, after investor demand took the total fundraising amount to record-breaking levels.
Octopus Titan VCT rapidly reached its initial target of GBP120 million within just four months and is now offering an additional GBP80 million of fundraising capacity to meet investor demand ahead of tax year end. The target of GBP200 million will be the largest ever fundraise by a VCT and, once fully subscribed, would increase the total fund size to over GBP600 million.
Octopus Titan VCT offers investors comfortable with the risks of smaller company investing, attractive tax incentives and access to a well-established and diverse portfolio of around 50 smaller companies. Since it launched in 2007 it has focused on backing talented entrepreneurs and innovative companies with the potential and ambition to make an impact on the global stage. These range from very early stage businesses, such as the retail property marketplace company Appear Here, to well-known household names including Secret Escapes, the members-only holiday company.
Paul Latham, Managing Director at Octopus Investments, says: “With investors facing increased taxation on both their pensions and property, the rise in inflows into VCTs is not surprising. More and more people are looking at alternative tax-efficient investment options to support their retirement planning. There has been a steady growth in demand for VCTs over the last few years as more advisers and investors gain awareness of the attractive benefits they offer. Today’s news is evidence of investor confidence in VCTs as a powerful planning tool and an increasingly mainstream investment option for many.”
Jo Oliver, fund manager of Octopus Titan VCT, says: “As well as the attractive tax benefits, people are increasingly interested in playing a role in supporting the next generation of UK businesses. In November, the Chancellor highlighted early stage companies as the backbone of the UK economy in his Autumn Budget, as well as recognising the vital part VCTs play in helping to develop these businesses. The UK is a vibrant market for entrepreneurial activity and there is a thriving pipeline of investment opportunities. We’re excited to be able to offer more investors access to the growth potential that these dynamic young companies can offer.”
