The Praetura Growth VCT is a generalist VCT that will invest in unquoted B2B technology growth companies. The aim is to produce an annual dividend yield of 4%-6% from 2027, with special dividends for large exits when possible. The VCT is evergreen.

Why invest

Positives

• Strategy: Exposure to a portfolio of companies across a range of sectors, with around two thirds likely to be based in the north of England.

Issues

• New VCT: Although Praetura intends to deploy rapidly, the initial portfolio will lack diversification.

 

Fund manager

Positives

• Team: Diverse range of experience in team, with clear strategy and well-structured approach for post-investment support.

Issues

• Rate of growth: While Praetura is confident in the strength of its deal flow, it has added some new funds recently.

 

Nuts & bolts

• Offer: The current offer is for £10m, with an over-allotment of £10m. The close for the current tax year is 3 April 2024, with final close on 31 May 2024.
• Dividend: The company aims to provide a dividend yield of 4%-6% p.a. from 2027, plus special dividends when possible.
• Buybacks: At up to a 5% discount to NAV.

 

Fees

• Fees: A mixture of direct fees and those charged to the investee companies.
• Performance fee: Charged on a portfolio basis, at 20% for returns over 120p.

 

Risks

• Target returns: There is no explicit target return, but the strategy suggests a high-risk investment strategy.
• Companies: Supplying risk capital to early-stage companies, most of which will rely on technology. There will be a spread of company returns as the successful ones will do very well, but those that fail may do so completely.

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