The £90m Downing One Venture Capital Trust (VCT) is seeking to raise £20m in its latest fundraise.
The Downing One VCT has a current yield of 8 per cent, and trades at a discount to net assets of 4.9 per cent.
The trust is the worst performer in the AIC VCT Aim quoted sector over the past five years, having returned 41 per cent over the past five years, less than half the 87 per cent returned by the sector in the same time period, according to data from FE Trustnet.
The trust has recently deployed £3.7m into four companies, among them, Xupes Ltd, which is a retailer of pre-owned luxury jewelry.
The company invests in both quoted and unquoted companies and into both the debt of the companies and the equities.
Jason Hollands managing director at Tilney Group, said: "Downing One offers investors access to a highly diversified hybrid legacy portfolio comprising of circa 60 per cent asset backed unquoted investments and 40 per cent Aim-listed growth companies."
"It is a highly diversified portfolio of 78 existing investments and offers investors access to a hybrid existing portfolio comprising 61 per cent unquoted, asset backed business with predictable revenue streams that generate income for the VCT, where deals were typically structured in favour of loan notes, alongside a 39 per cent exposure to growth companies listed on the Aim market where it takes equity stakes.”
david.thorpe@ft.com
