Speaking to FT Adviser, Lewis highlighted that Venture Capital Trusts (VCTs) now attract a broader range of investors.
Introduced in 1995, the tax-based scheme has grown into a £6.5bn industry. Lewis explained that VCTs create opportunities — for jobs, growth founders, and VCT shareholders.
Initially seen as a niche sector, VCTs have become more mainstream over the past 15 years, including from an adviser’s perspective.
While the underlying asset classes have evolved, the core purpose of VCTs — to provide wider access to venture capital, previously limited to institutions or high-net-worth individuals — remains unchanged.
Lewis noted that rising tax rates have led investors to seek efficient tax solutions, making VCTs appealing to some younger individuals. However, the typical investor still falls within the 50-60 age range.
“We also have people who continue investing throughout retirement,” Lewis said, emphasizing VCTs’ growing appeal.
Although VCTs are not suitable for everyone, with minimum investments typically ranging from £3,000 to £6,000 and a medium-to-long-term outlook, Lewis believes they can complement pension income. He recalled that advisers once positioned VCTs as a tax-free income source, allowing investors to build wealth over time and benefit from tax-free dividends.
