Jack Rose: How VCTs are shaping up in 2019/20
- On October 22, 2019
- By GrowthInvest
Popular offers in high demand
With only a handful of the established VCTs yet to declare their fundraising intentions for this year, writes Jack Rose, the landscape for ‘tax season’ is becoming clearer
All the early signs are that, yet again, it is shaping up to be another very strong year for Venture Capital Trust (VCT) fundraising. As it currently stands there is around £650m of capacity available (through a combination of initial offers and over-allotment facilities) with at least a couple of the established VCTs yet to announce their intentions.
As we head into October things are already in full swing with close to £50m already raised for offers open this tax year. Encouragingly, and on the back of a number of successful new VCT launches last year (Seneca and Draper), there looks to be one or two new entrants potentially coming to market this year illustrating the continued growth and interest in this space as VCTs continue to benefit from the changes to pension legislation.
Of the 16 offers open, broadly two-thirds are for offers of £30m or less (including overallotments). This means that, as per the last couple of years, for those looking to access a specific offer, it is a case of acting sooner rather than later.
With the average fundraise size slightly smaller than last year it will continue to be the case that the most popular offers will yet again be in extremely high demand – and those leaving it until the end of the tax year will be disappointed.
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