Venture Capital Trusts  

Downing sells VCT business for £17.8mn

Downing sells VCT business for £17.8mn
(Artem Podrez/Pexels)

Investment manager Downing has sold its venture capital trust business to Foresight Group, in a deal worth £17.8mn

The group has sold its technology ventures division, which includes management of Downing’s VCTs and ventures enterprise investment scheme (EIS).

Of the total amount, £13.6mn will be paid upfront, with a further £4.2mn paid over three years, subject to certain targets being met.

The acquisition includes the investment mandates of £275mn in assets across the Downing One VCT, Downing Four VCT and Downing Ventures EIS.

This will bring Foresight’s VCT net asset value to £542mn, and the group expects it to push its earnings to £2.8mn in the first 12 months post completion.

Foresight is planning to grow its AUM by 20-25 per cent per annum, and to grow Ebitda by 43 per cent over the “medium term” it said in a statement today.

The acquisition is due to complete by the end of this month.

Executive chair of Foresight Group, Bernard Fairman, said the business is an “excellent strategic fit” for the group.

“We are investing in multi-stage, fast growing, scalable businesses with the potential to generate significant returns. 

“We continue to actively pursue multiple further M&A opportunities across the wider business, alongside delivering strong organic growth."

sally.hickey@ft.com