Strategy: Exposure to a portfolio of scale-up, technology-enabled companies, with good management and large markets.
Issues
Dividend coverage: While the dividend is covered by earnings, there are no realised gains as yet.
Fund manager
Positives
Team: There is a diverse range of experience in the team, with a clear strategy and well-designed processes.
Issues
Track record: The Ventures team has a limited track record but has produced good performance over the past three years.
Nuts & bolts
Offer: To raise £20m, plus a £20m overallotment, with a closing date of 1 April 2026 for the 2025/26 tax year, and final close on 24 August 2026.
Diversification: This has improved significantly: as of June 2025, the VCT had 35 active investments, with an active deal pipeline.
Buybacks: At a 5% discount to NAV, subject to available reserves and board approval. First buybacks were made in 2025.
Fees
Fees: The ongoing charges and fees totalled 3.19% in FY’24, after a 0.5% rebate to shareholders (primarily, to pay advisory fees).
Performance fee: 20%, subject to a 130p minimum return.
Risks
Target returns: A target return of 2.5x for individual investments suggests that the strategy is high-risk investment.
Companies: Growth-stage, technology-enabled companies at the start of scale-up. There will be a spread of company returns, as the successful investments will do very well, but those that fail may do so completely.
