9 January 2019 - If you missed out on any of the VCT discount offers before Christmas, never fear, two new VCT offers have opened-up to investors.
Summary details for each are listed below. For more information or an application form, please contact Chelsea on 020 7384 7300 or visit our dedicated page.
Northern Venture Trust PLC, Northern 2 VCT and Northern VCT 3 are each looking to raise £6.6 million. The minimum investment is £6,000, but this can be split between between two or more of the VCTs (minimum investment of £2,000 per VCT).
Early-bird discount: the 4% initial charge has been reduced to 1.25% for Chelsea clients investing before 31 January 2019 and 1.75% thereafter.
Northern have a strong track record of delivering for their investors and we expect these new offers to sell out quickly. While recent changes to legislation have brought about a fresh set of challenges (dividends will be realised more from the sale of equity than debt investment, management buy-out deals no longer qualify and VCTs are required to focus on growth equity investment instead), Northern has adapted by straightening its investment team and skill set. There is also an attractive legacy portfolio, with the possibility of providing healthy exits in future.
Proven VCT and Proven Growth & Income VCT are seeking to raise £60 million in a combined offer, with a £20 million over-allotment facility. Both VCTs are generalist, investing across a spectrum of sectors, into companies with a global footprint and strong demand for the good or service they provide. Evidence for rapid growth potential in sales and profits is sought.
Early-bird discount: Chelsea clients can enjoy a reduced initial charge of 1% for existing investors or 2% for new investors. This offer is available until 15 February 2019 or when the VCTs have each raised £5 million (whichever comes first). Thereafter, the initial charge will rise to 2.5%.
Proven has a successful history of growth equity investing and the recent VCT rule changes have made little difference to their tried and tested strategy. Both VCTs have achieved healthy above-sector returns and Proven VCT recently delivered an unprecedented 25p special dividend to investors.
Please be aware that VCTs are long-term, highly illiquid investments. VCTs usually invest in small, unquoted companies and carry a greater risk than many other forms of investment. In addition, the level of charges is often greater than unit trusts and OEICs. Past performance is not necessarily a guide to the future. The value of investments, and the income from them, can fall as well as rise and you may not get back the amount invested. Chelsea Financial Services offers an execution-only service. If you require investment advice you should contact an expert adviser. Tax relief is restricted to total VCT investments for each investor up to £200,000 per tax year. Tax is subject to statutory change and the value of tax relief (if any) will depend upon individual circumstances.