VCT Industry Report 2015/2016
Get to grips with VCTs and earn up to four hours of CPD
Learn key benefits and risks of investing in SMEs through VCTs
Get an overview of the regulation changes affecting VCTs
Discover latest sentiment of advisers, investors & managers towards VCTs
Find out how to overcome challenges faced when considering VCTs
Earn up to four hours of structured CPD from the CISI, CII and PFS
After reading the report, you will understand the:
Differences between various VCT operating models, including growth-focused VCTs, capital preservation VCTs and limited life VCTs
Changes to rules governing VCTs that were made in 2015, and what impact they will have on VCTs risk profile
Investment case for VCTs, especially in the light of reductions to pension limits
The report will also give you:
A process for conducting due diligence on VCTs and selecting an investment panel
Suggestions for using VCTs to implement tax-efficient decumulation strategies
An assessment of the risks of VCTs, including investment risk and liquidity
Comparisons between VCTs and other tax-advantaged venture capital schemes
Demand for VCTs is growing
In 2016 the lifetime allowance for pensions will decline to just £1m. Lower annual allowances and limits on what high earners can save have already been implemented. This means more investors are looking for tax-efficient alternatives to pensions. VCTs meet this need, offering income tax relief as well as tax free growth and income. It’s no surprise they are, becoming increasingly popular.
This report has been put together with the help of these industry experts
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Key Findings 2015/2016 VCT Industry Report
Changing risk profile of some VCTs: new rules excluding management buy-outs and company acquisitions will change the risk profile of some VCTs
Increasing popularity: 91% of advisers expect to do more VCT business over the next 12 months
Positive impact on UK economy: for every £1 of initial tax relief, the average investee company sees its turnover increase by £6.46
Consistent returns: VCTs paid out aggregate dividends of over £240 million in the year to March 2015. Generalist VCTs currently yield 8.9% on average
Effective fundraising: 66 VCTs raised £440 million in the tax year to April 2014
Expanding sector: there were 32 providers in the market as of December 2015. The sector has total assets of £3.5 billion
Time to reassess VCTs?
VCTs have not enjoyed the same levels of interest as mainstream funds or their tax-advantaged counterpart, the EIS. This may be because of the marketing advantages OEICS enjoyed over investment companies, or because of the higher investment limits with EIS. But investors could be missing a trick – the VCT industry has developed over the last few years. Charging structures are fairer, discounts to the NAV are at record lows, exit options are clearer and the average tax free 8% yield is virtually unbeatable in today’s low interest rate environment.
Access the information you need
Report includes results from surveys of advisers, investors and providers keeping you informed of shifting opinions and preferences. Also includes a comprehensive analysis of the VCT sector. Revealing the trends shaping the market.Fresh research will give you up to date reference points that provide benchmarks for costs, fees, the level of target return and other key aspects of the VCT arena.Other key topics discussed include suitability, due diligence, panel creation and where to go for more information – all important issues when advising on these assets, whether you are a longstanding VCT supporter or looking at them for the very first time.
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The 2015/16 VCT Industry Report is supported by leading VCT providers
As a financial services boutique, our purpose is to enrich our clients’ lives and to help women live more fulfilling lives. We do this by diligently taking care of their financial well being.
We also enrich lives by nurturing a collaborative community that provides opportunity for women to use their time, talent and wealth to connect and co-invest in small business and social projects.
We are inspired to excel and be the very best we can be and in the process we hope to inspire our clients to live their ideal life.
Albion Ventures LLP was created in January 2009, when it acquired the business of Close Ventures Limited from Close Brothers Group plc and is structured as a partnership formed by the former Close Ventures management team. We think it is appropriate that a business investing in owner-managed companies is itself owner-managed.
We look to invest £1-10 million in a wide range of growing businesses, from technology orientated companies to service and asset-based businesses.
We enjoy working with smaller companies and entrepreneurial management teams, seeing our purpose as helping businesses to grow by providing financial resources as well as strategic advice. Our ultimate aim is to realise the full potential of the business invested in and so create returns for the shareholders in our funds. We act with integrity and respect for the people we deal with.
As one of the leading new peer to peer lending businesses, our purpose is very clear; to deliver fairer growth together. What do we mean by this? Well everything that we do is aimed at growing your investments with us, at growing credit worthy businesses by providing them access to your capital and at growing people and their careers with us as they manage our investors and borrowers.
This is achieved by us all working together effectively and using the power of the internet to be efficient. Through efficiency we seek to deliver better value to each of our stakeholders; the prospect of higher returns to investors and lower cost finance to businesses with us being efficient but profitable in the middle.
Fairer, Growth, Together.
Beaufort Asset Management are a firm of independent financial advisers, based in Reading, Berkshire. Our growing team of 16 provide bespoke advice to both personal and corporate clients across the UK. Relationships are key to our success and we are proud of the on-going guidance, advice and care we offer to ensure we not only look after your wealth, but also support you through the successes and challenges that each year brings.
Successful EIS investing is about managing risk.
Investing in unlisted smaller companies can be exciting and highly rewarding but very few private investors have the necessary time or experience to originate the right deals, agree the right terms and conduct effective due diligence.
CoInvestor helps reduce your EIS investment risk by letting you co-invest alongside experienced fund managers committing their own funds into each deal.
Goldfinch Entertainment is backed by Nyman Libson Paul; Chartered Accountants, Tax and Business Advisors to the Entertainment Industry for over 80 years.
Nyman Libson Paul was founded in 1933 when the wonderful worlds of celluloid and accountancy were black and white, and now, in a digital, multi-platformed, Technicolor age they still represent some of the best and brightest luminaries in the world of entertainment from Film, Television, Music and more.
Whilst they offer traditional accountancy services they also provide much broader commercial, tax and financial management advice; all underpinned by their experience and knowledge of the Entertainment Industry.
Lawson Conner was founded in 2010 with the desire to create better ways of operating financial services firms by injecting innovation, multi-asset class expertise and excellence in client focus into the world of fund management. With that in mind, we brought together an exceptional group of talented professionals to cover a wide spectrum of financial services functions, all with one single goal: “Create a world class fund management and advisor platform!”.
Over the past five years we helped more than 100 clients to effectively navigate through the challenges of launching and operating financial services businesses. On that journey we have become thought leaders in the areas of onshore/offshore Fund Structures, AIFMD, the national private placement regimes (NPPR), FinTech business models and RegTech. The team at Lawson Conner covers a wide range of asset classes from long/short equity, derivatives, commodities, real estate to private equity and loan based investment models. We serve our clients from 4 different locations, in the US (2x), Hong Kong and from our headquarters in London.
MMC is one of the most active venture capital investors in the UK. We back entrepreneurs based in the UK with global ambition, and partner with them to provide capital and strategic input as they grow.
Founded in 2000, MMC has built a nationwide network that sources our proprietary deal flow and provides valuable connections for our portfolio.
We believe in putting our money where our mouth is. Of the £150m currently under management, over £10m has been invested by the MMC team – on the same terms as our investors.
Our investors are individuals and institutions whose risk appetite, outlook and values match our own. They invest through MMC fund structures that allow us to maximise their returns.
Pembroke VCT plc is a venture capital trust that provides investors with access to a private equity style investment strategy with significant tax benefits. As part of the Oakley Capital group of companies, we are committed to helping management teams realise their vision, utilising our extensive network and experience. From start-ups to more mature businesses we invest in founders and management teams we have confidence in, across industries we believe have exciting growth prospects.
In turn these entrepreneurs often seek the financial advice and operational and strategic expertise that our team can provide. We only invest in companies where we can add value over and above simply providing capital, and where we are confident our resources and experience can be most instrumental in their growth. We are hands-on investors, providing a supportive framework and access to unparalleled talent across our Board, Management Team and Advisors.
QVentures is a co-investment club for the smartest and most experienced investors in the market.
QVentures is a members-only investment Club for sophisticated investors, UHNWIs, venture capital firms and family offices able to deploy a minimum of £25k into an individual deal.
Our members gain access to investment opportunities alongside top-tier VCs and Super Angels in deals that have been strictly vetted.
Members also benefit from being part of a vetted group of like-minded individuals, creating opportunities for non-exec positions and a new source of strategic capital for your own portfolio companies.