Albion Ventures has launched the Albion VCTs Top Up Offers seeking to raise up to GBP15m across its six venture capital trusts.
The offers are targeting a monthly tax-free income of five per cent (should investors choose to invest equally across all offers), equivalent to 7.1 per cent on the net cost of investment after up-front tax relief at 30 per cent. Since the business was founded in 1996, Albion VCTs have paid out dividends to shareholders every year, totalling over GBP130m.
Investors in the offers also have the option to boost their capital growth by participating in the dividend reinvestment scheme (DRIS), under which dividends are reinvested in the form of new shares in Albion VCTs.
The offers will provide investors with immediate exposure to six mature Albion VCTs, comprising a GBP230m diversified portfolio of 75 businesses. These range from stable asset-backed businesses to growth and technology companies. The current focus for investment on the healthcare and environmental sectors ensures a spread that is not overly reliant on consumer-facing businesses.
Investors who apply before 31 January 2014 will be entitled to an "early bird" discount – existing shareholders in any of the Albion VCTs will benefit from a one per cent discount and new shareholders will benefit from 0.5 per cent discount.
Patrick Reeve, managing partner at Albion Ventures says: “Our VCTs have a proven track record to date, delivering strong returns and tax relief to investors. We have seen good growth within our portfolio and we are expecting continued strong demand for our offers this year as investors look to take advantage of a reliable long-term income stream and the prospect of capital growth.
“Our VCTs are attractive to investors looking for an additional form of pension supplement post-retirement and also to investors who regard it as a long term savings plan. Investing through our VCTs provides good diversification across a broad portfolio of SMEs.
“2013 has proven to be one of our busiest years as the UK economy climbs out of recession. Over the last 12 months, the team has invested or committed GBP28m in a broad range of unquoted companies with five exits totalling GBP30m. We are excited about the opportunities we are seeing to back high growth companies and look forward to extending these to both new and existing investors.”