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 investment criteria include a target IRR of at least 20% p.a. for each investment. The intention is for individual investments to exit in three to seven years, with the VCT itself being a continuing entity. The current offer is to raise £10m, with a £5m over-allotment facility.

Calculus Capital Limited is the Fund Manager, and there are no other companies involved in running the fund.

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 couple of years, just under 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: Some write-offs have adversely affected the company’s previously very good performance. An average realised 13% IRR is still credible.


Nuts & bolts

  • Offer: To raise £10m, with a £5m over-allotment facility in the 2021/22 and 2022/23 tax years.
  • Diversification: The existing portfolio has 36 Qualifying investments.
  • 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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