The Blackfinch Spring VCT offers investors exposure to a portfolio of growth-stage, technology-enabled businesses operating in large markets. The experienced Ventures team brings diverse expertise, a clear investment strategy and well-designed processes, and has delivered encouraging performance over the past five years. While no gains have yet been realised, the dividend is covered by earnings. The VCT is targeting an annual dividend yield of 5%, with the potential for additional special dividends where realisations permit.

Why invest

Positives

• 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 five years.

Nuts & bolts

• Offer: To raise £20m, plus a £20m overallotment, with a closing date of 2 April 2027 for the 2026/27 tax year, and final close on 23 August 2027.
• Diversification: This has improved significantly – as of June 2026, the VCT had 46 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 2.88% in FY’25, 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.