The VCT aims to generate sufficient returns to maximise tax-free dividends while giving capital growth over the medium to long term. The current fundraising is for Ordinary shares, which will have an income target of 4.5% of NAV. Returns will be generated by investing in a portfolio of mainly unquoted companies across different industries.

The report give into detail on the VCT’s investment process, including how the Investment Manager sources and selects investments and how it supports and monitors them after investment. It covers the effect of fees and gives past performance information both on the VCT and for Calculus Capital as a whole, as well as supplying the basic diligence information that investors require.

Why Invest


  • Strategy: To invest in a portfolio of more established unquoted companies in order to preserve capital value while generating an income stream.


  • Exposure level: With the majority of the VCT being funds raised in the last two years, just over half of the assets are currently invested.


The Investment Manager


Team: One of the longest-standing managers in the VCT/EIS area, Calculus has a highly experienced and stable team.


Past performance: Write-offs over the last couple of years have adversely affected the company’s previously very good performance. An average realised 9% IRR is still credible.


Nuts & Bolts

  • Offer: To raise £10m, with a £5m over-allotment facility in the 2018/19 and 2019/20 tax years.
  • Diversification: The existing portfolio has 25 investments with a weight of over 1%.
  • Valuation: Investors will receive valuations twice a year. Industry guidelines will be used, with two auditors examining the figures.


Specific Issues

  • Fees: Mixture of direct fees and fees charged via the investee companies.
  • Performance fee: 20% on investor share of proceeds over 105p for every 100p invested.



  • Risk mitigation: The aim is to diversify by sector, and the focus on relatively more established companies should also help mitigate some of the risk.
  • Target return: Overall, the strategy is medium-risk relative to other EIS/VCT products, with the target company IRR of 20% and capital return of 2.5x towards the top end of what we would expect for that risk category. The VCT targets an annual dividend of 4.5% of NAV, while also providing capital growth.



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