IBIS Media VCT 1 plc, the specialist media investment fund chaired by Sir Robin Miller, is opening its existing fund to new investors.
The IBIS Media VCT offers investors access to an established portfolio of nine British media companies that includes Contagious, GetMeMedia, Ginx TV and Masher. The fund was originally launched in 2006, and since launch has already had one successful exit, Quintus, which was sold for a 42% uplift to IMG Worldwide.
The fund was set up by Charles McIntyre and David Forster to provide a tax efficient vehicle for investors to access investments in the media sector. Chaired by ex-EMAP chief Sir Robin Miller, the IBIS VCT Investment Committee includes Peter Williams, the group finance director of the Daily Mail and General Trust; and Gary Hughes, the CFO of Gala Coral Group and former CEO of CMP Information a subsidiary of United Business Media.
IBIS Media VCT currently has over GBP8 million of investment capital, of which over GBP1.3 million is from members of the Board and Investment Committee. Every member of the team will be investing again under the current offer. Since launch the total return (NAV per share plus cumulative dividends paid) of IBIS Media VCT places the fund in the top 20% of all VCTs launched at the same time or since. This performance illustrates the benefits of using dedicated sector expertise; expertise that some generalist VCT funds will find hard to attract.
Charles McIntyre, Co-Founder of IBIS Capital, says: “Certain areas of traditional media have come under enormous pressure in the past few years as managements have had to grapple with new technology and changing consumer habits: Amazon’s ebooks have begun to outsell paperbacks, Apple and News Corp have launched an iPad-only newspaper, and LinkedIn and Facebook IPOs are in the pipeline. As experienced media-sector investors we find this digital transformation tremendously exciting, and our portfolio is positioned to take advantage of current trends. We think we provide investors an attractive way of gaining exposure to some of the faster growing sub-sectors of the media industry.
“After the success we were having with a number of direct media investments in companies like the music business MAMA, we decided to launch our VCT in 2006 to offer a wider base of investors the opportunity to access our deal flow. In recent years, further tax hikes and changes to pension rules have added to the attractiveness of the VCT wrapper, with its significant tax benefits. We offer access to a sector specialist team with an established track record in a tax efficient fund with a visible portfolio of investments. People can then judge for themselves. ”
The IBIS Media VCT is part of the larger IBIS Capital group which also manages the successful IBIS Global Media fund and provides corporate finance advice to media companies and their investors. IBIS Capital’s multi-platform approach means that it is involved right across the media spectrum and so can attract opportunities and talent that smaller funds find difficult. The Board and Investment Committee of the VCT are a testament to this. The team has a long track record of successfully investing in the media sector and many of the IBIS Media VCT investors are media entrepreneurs who understand the opportunities that the IBIS portfolio offers.
The media sector is undergoing an intense period of structural change; it is dynamic and it is challenging but it also offers exciting growth opportunities as young entrepreneurial companies introduce new business models and break down barriers to entry. The growth of the digital world is just one example. It is within this environment that IBIS’ experience, market intelligence and knowledge offers an investment advantage. Investors seeking new ideas, growth opportunities and tax efficient investing should consider IBIS’ offer in the media sector.
