Amati’s Alternative Investment Market (AIM) VCT has sold out within five days of launching its offer, the firm reports, raising GBP25 million from private investors, GBP13 million of which was in the first 90 minutes and GBP21 million was raised on the first day.
This beats its previous record of raising more than GBP7 million within the first 90 minutes of its fund raise in February 2019. It comes in a record year for VCTs sales with more than GBP821 million sold, with six more weeks until the tax year end.
The offer launched at 10am on Wednesday 16th February and one third of the GBP25 million was raised through Wealth Club private investors. The offer closed at 8.45pm on Sunday 20th February.
The VCT invests predominantly in stocks listed on the Alternative Investment Market (AIM) and offers a mixed portfolio of mature, revenue-generating companies as well as earlier-stage businesses with the potential for significant growth. The VCT has a bias for the healthcare and information technology sectors, both of which fared comparatively well through the pandemic.
The minimum investment was GBP4,000 and in total the VCT has net assets of GBP247.1 million. Over the past 10 years, Amati AIM VCT produced a NAV total return of 241.99 per cent, making it the third best-performing VCT over the period.
Alex Davies, CEO of Wealth Club, comments: “Early interest was strong in securing an investment in the Amati VCT was is a bit like getting in to Glastonbury Festival with GBP13 million raised within 90 minutes of launch – making it one of the hottest tickets of the season. Amati has a strong track record of delivering attractive returns and has paid steady dividends which is why it’s a particular favourite among clients.
This year over GBP821 million has been placed into VCTs, which breaks the previous record of GBP779 million, which was achieved in 2005/06 tax year when the tax relief was temporarily increased to 40 per cent. This is still with six weeks of the tax year still to run. The short and long term impact that the VCT scheme is having in stimulating British enterprise cannot and should not be underestimated.”
Rachel Le Derf, Head of Sales & Marketing at Amati Global Investors comments: “The Amati team has developed a strong following over recent years and we are delighted to see the continued support for the Amati AIM VCT in what remains a challenging environment.”