Bringing you live news and features since 2006 

Albion Capital launches GBP36 million VCT fundraising


Albion Capital is seeking to raise up to GBP36 million through top up offers for its six venture capital trusts. 

The fundraising targets GBP6 million for each of the six Albion VCTs: Albion Venture Capital Trust PLC, Albion Development VCT PLC, Albion Enterprise VCT PLC, Albion Technology & General VCT PLC, Crown Place VCT PLC and Kings Arms Yard VCT PLC. Investments spread across all six portfolios will receive a monthly dividend with a yield of approximately 5.5 per cent, or 7.8 per cent after tax relief, a potentially attractive income source in the current low interest rate environment. 

Investors who apply before 2 pm on 28 February for the first GBP10 million of shares will be entitled to an “early bird” reduction in the offer costs. Existing Albion investors will receive a 1.0 per cent reduction and new investors will receive a 0.5 per cent reduction.
The offers provide exposure to balanced portfolios with a combined value of around GBP400 million, diversified across approximately 70 businesses. Their launch reflects Albion’s confidence in an exciting pipeline of investment opportunities in sectors with long-term growth potential, including digital healthcare, automation, digital security and data analytics. 

A strong investment programme has seen the VCTs invest GBP31m in 21 high growth businesses in the year to 30 September. Over the five years to 30 September the Albion VCTs returned an average of 7.8 per cent pa excluding tax relief.  

Recent investments include technology companies such as Koru Kids, an online marketplace for nannies, Phrasee, a company using AI to generate optimised marketing copy, and Locum’s Nest, an app which is revolutionising the way NHS trusts manage locum doctors. The Albion VCTs also celebrated the high profile exit of Grapeshot, a provider of contextualised advertising solutions, which was sold to Oracle in April 2018 and generated a return of approximately 10x on an investment of GBP2.9m.
Will Fraser-Allen, deputy managing partner at Albion Capital, says: “VCTs are attracting sustained investor interest buoyed by a supportive climate for patient capital investing. The Government has given its considerable backing to UK entrepreneurs driving high growth businesses, from measures announced in the Patient Capital Review to a more recent drive to encourage pension money into scale-up businesses.” 

“Against this backdrop we see an encouraging number of opportunities for VCTs, in particular in high innovation areas such as B2B software and technology enabled services, including digital health. This, combined with a need for real income and capital growth, is likely to herald another healthy year for VCT fundraising in 2019.”
The offers opened on 7 January 2019 and are expected to close no later than 2 pm on 30 September 2019 unless capacity is met sooner.

Latest News

Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..
Confidence in the continuing strength of bitcoin and Ethereum is driving wider interest in altcoins and other digital assets, according..

Related Articles

Sal Esposito, Zacks Investment Management
Zacks Investment Management started doing investment research in 1978 and in 1992 started its investment management arm, initially with SMAs...
Jeremy Senderowicz, Vedder Price
Jeremy Senderowicz, a member of the Investment Services Group at law firm Vedder Price, has witnessed a steady upswing in...
Graham MacKenzie, Toronto Stock Exchange
The evolution of ETFs has been a multi-decade experience for Toronto Stock Exchange says Graham MacKenzie, managing director, Exchange Traded...
Frank Koudelka, State Street Global Services
ETF data provider and ETF Express data partner, Trackinsight, has published its Global ETF Survey 2024 Report: ‘50+ Charts on...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by