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Baronsmead fundraising raises £16.54m for VCTs
Four Baronsmead venture capital trusts have raised a total of £16.54m as investors take advantage of the tax-friendly product, the head of new investment for Baronsmead VCTs has said.
Andrew Garside, said the trusts had received £4.1m each and were now fully subscribed.
He said the funds would help the companies in which the VCTs invest to take advantage of investment opportunities, maintain liquidity and pay dividends to shareholders.
Mr Garside said: “We remain active investors supporting UK entrepreneurs and we are aiming to make several new investments in 2012 to continue the growth of the Baronsmead funds.”
The popularity of the VCTs comes after the Association of Investment Companies announced the tax-effective product had fared well during 2011, with performance rivalling the wider investment company sector.
It said half of the top-10 performing investment companies to the end of December 2011 were VCTs, suggesting that the sector has held its own in 2011.
Although the VCT sector as a whole was down 3 per cent at the end of last year, it outperformed the average investment company, which was down 11 per cent over the same period, and was in line with the FTSE All Share.
Colin Jackson, director of Essex-based Baronworth Investment Services, said: “We do VCTs through our execution-only side.
“The product can be quite complex. VCTs have limited appeal because of the complexities and risk.
“However, for a wealth management organisation, it could be more attractive and is a whole different ball game.”
