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Octopus merges AIM VCTs

Venture capital trust provider Octopus Investments has completed merger of four of its Alternative Investment Market VCTs into two.

Octopus AIM VCT and Octopus Phoenix VCT have merged to become the enlarged Octopus AIM VCT.

Meanwhile, Octopus Second AIM VCT and Octopus IHT AIM VCT have merged to become Octopus Second AIM VCT.

Both VCTs are now open for investment via top up offers, and are seeking to raise GBP10m each by the end of April 2011.

The AIM VCTs are managed by Andrew Buchanan and Kate Tidbury, who have been involved with the AIM market since inception. They moved to Octopus from Close Investments in 2008.

Buchanan says: “With combined portfolios of established companies, greater flexibility in fund management and reduced running costs for these VCTs, we can now look to drive value for shareholders. In addition, the small cap companies in which the VCTs invest are making significant progress which has yet to be reflected in share prices.”

The mergers aim to bring benefits to existing investors via reduced costs, through economies of scale, and through allowing the VCTs’ managers greater flexibility in how they manage the VCT. The newly merged VCTs also have an increased ability to maintain liquidity for dividends and share buy-backs.

The top up offers are open to both existing and new investors.

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