VCT guide

64 PROVIDERS IN FOCUS About the provider Seneca Partners is a specialist investment and corporate advisory business based in the North of the UK. Seneca provides equity and debt funding to UK SMEs, helping business owners to both finance their growth and realise value on exit either via trade sale, flotation or restructuring. With over £750 million of AUM across the various Seneca businesses, Seneca is a long standing EIS and private equity investor with a strong track record of value realisation for investors. Seneca’s strong regional presence provides access to high quality and unique investment opportunities. Our VCT Offer As investment manager, Seneca Partners is seeking to raise up to £10 million under the current open offer with an over-allotment facility of up to a further £10 million. Seneca intends to distribute a large proportion of the net profits it receives from realisations of investments made by way of regular and special tax-free dividends. Therefore, the offer is intended for those investors who are primarily seeking tax-free income from a diverse portfolio of investments in established SMEs across the UK, whilst also seeking to maintain the value of the capital invested. Case Study In December 2018, the VCT invested in a fast growing ecommerce business, SilkFred Limited, which specialises in independent ladies’ fashion brands, as part of a £4 million funding round. The business works with approximately 600 independent brands, selling to over 500,000 customers. It acts as a central marketing and sales platform, charging commission for these services. As a result, the business takes minimal inventory and working capital risk on new brands, lines or products. Seneca’s funds and board level guidance have enabled the company to continue to invest in core infrastructure and to innovate its methods to enhance the customer experience. Seneca’s first investment in Silkfred was in March 2018 (via its EIS Portfolio Service). Those funds and the VCT’s later investment have enabled the company to grow Gross Marketplace Sales from approximately £11 million in the 12 months ended December 2016 to a current annual run-rate of approximately £50 million, and forecast sales of £60 million in the 12 months ending December 2019. www.senecapartners.co.uk GROWTH CAPITAL FUNDS RAISED AND DEPLOYED Raised (Gross) Deployed (Net) £10m £0m £20m £30m £40m £50m £60m APR-13 APR-14 APR-15 APR-16 APR-17 APR-18 APR-19 Amati AIM VCT Prospectus Offer 2019/20 & 2020/21 Blackfinch Spring VCT Plc MANAGER NAME Amati Global Investors Ltd Blackfinch Investments Limited YEAR FOUNDED 2010 1992 AUM (IN TOTAL) / AUM (VCT) £438m / £134m £330m / £0 DESCRIPTION OF OFFER Amati AIM VCT aims to make long-term investments in innovative businesses which have the potential to become successful AIM- quoted growth companies. As this is a long established VCT, the portfolio is dominated by companies that have achieved this transition Blackfinch Spring VCT plans to invest in a diversified range of early stage innovative technology firms operating across sectors. These companies are poised for growth and success and by 2024 we plan to return the profits to investors as tax-free dividends of 5% per annum LAUNCH DATE Q4 2019 October 2019 UNDERLYING ASSETS AIM quoted securities Shares in high-growth technology companies TARGET NO. OF HOLDINGS Currently portfolio of 66 companies 10 - 15 TARGET ANNUAL RETURN N/A 5% TARGET FUNDRAISE £25m with an over-allotment facility of £20m £20m with an over allotment facility of £10m INVESTMENT OBJECTIVE The objective of the company is to provide a tax-free dividend return to shareholders primarily through the realisation of capital gains while maintaining the capital value of the shares. The company is managed as a VCT in order that shareholders may benefit from the tax reliefs available Growth & Income INVESTMENT HORIZON 5 years 4-7 years (minimum 5 years to retain income tax relief) MINIMUM INVESTMENT £4,000 £3,000 INITAL FEE 3% for new investors, 1% for existing shareholders and applications via an authorised financial intermediary 2.5% advised, up to 5.5% execution only AMC 1.75% (Ongoing charges figure 1.96% inc. AMC) 2.5% with up to 0.5% used to facilitate ongoing adviser charges, difference rebated as extra shares OTHER FEES No performance fees Performance fee - 20% with 130% hurdle. Annual costs cap of 3.5% of net assets. Refer to prospectus for full details Comparison table 65 PROVIDERS IN FOCUS