Octopus Investments has launched a £30m fundraising campaign for its Apollo venture capital trust as it moves to invest in new portfolio companies, Grant-Paul Florence has said.
“VCTs are a vital source of funding for smaller businesses, and there is a strong pipeline of attractive investment opportunities across the country that can help Apollo VCT deliver on its mandate for investors,” the fund manager of Octopus Apollo VCT said.
Apollo VCT, which has a diverse portfolio of around 25 companies, seeks to invest in established, profitable companies with the objective of providing investors with a regular tax-free dividend income. It now targets a yearly regular dividend of up to 5p per share.
The new share offer comes two months after Octopus Titan Venture Capital Trust launched a £50m fundraising share offer. The share offer is open until 1 November 2016, unless the fundraising capacity is reached earlier.
The minimum investment is £5,000 and the maximum investment that still qualifies for income tax relief is £200,000.
Launched in 2006, it paid its first dividend in 2008 and since then has paid out a total of 30p per share to investors.
Adviser view
Alex Reynolds, financial adviser at London-based Advies Private Clients, said: “Octopus has a very good track record in the VCT space, which are being used more and more in pensions especially by high net-worth individuals. This offering is good for advisers looking for firms that offer a good yield, have good results and dividends and a good track record.”
