Seneca Growth Capital VCT has launched a new offer for subscription for its B shares, to raise GBP10 million, with an over-allotment facility to raise up to a further GBP10 million.
Marking its tenth anniversary this year, Seneca Partners was established to provide the investment and advisory services that the UK’s underserved SME sector was seeking. Over the last decade it has actively engaged with over 4,000 SME businesses and now has over GBP250 million assets under management across the Seneca stable of companies. Seneca Partners has now deployed cGBP100 million into over 50 SME companies, through more than 100 funding rounds since the launch of its growth capital investment activity in 2013.
Shareholders in the VCT will gain access to some of the UK’s most innovative growing businesses, via a diverse portfolio of established, private and AIM quoted businesses. The VCT aims to provide investors with an attractive income stream, as well as capital growth over the longer term.
The team seeks to invest in established, well managed businesses with strong and proven leadership teams, that can demonstrate established concepts and are seeking an injection of growth capital to support their continued development. Seneca Partner’s strong network and extensive footprint in the Northern regions of the UK provides excellent proprietary deal flow and opportunity for investors seeking regional exposure to both private and AIM quoted growth opportunities within a VCT.
The VCT has raised more than GBP13.5 million since launching its B Share class in 2018 and most recently shareholders have benefitted from a 34.3 per cent increase in the NAV (inclusive of dividends paid) as at 15 October 2021, from the 30 March 2020 NAV of 79.5p per B share at the start of the Covid-19 pandemic.
Since launch in 2018, the VCT has made 16 investments and has already established a positive exit track record, achieving five exits (full and partial) at a blended total return of 2.2x, including two full exits generating returns of 2.1x and 1.8x respectively. In addition, 7.5p dividends have been paid since launch.
Matt Currie, Investment Director at Seneca Partners, says: “The Seneca Growth Capital VCT has continued to achieve positive momentum over the past year, driven in particular by the performance of our AIM quoted investments. With a strong pipeline of both private and AIM quoted investment opportunities in excess of £30m currently under review, we are excited about continuing to add attractive growth capital investment to the VCT’s portfolio over the next 12 months. We are also focused on continuing to pay dividends in line with our objective of at least 3p per annum with the aim of increasing this to 5 per cent of B share NAV by 2023.”
