Puma Investments launches £15mn Alpha VCT fundraise

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Puma Investments launches £15mn Alpha VCT fundraise

Puma Investments is launching a £15mn fundraise for its Alpha VCT.

The company has today (December 15) opened the fundraise, with an over-allotment facility for a further £5mn.

The Alpha VCT launched in 2019 and since then has invested £13.65mn in 10 qualifying businesses in the UK, and its net asset value has risen 26 per cent.

It has also achieved its first exit, reaching a 38 per cent internal rate of return.

Investments the VCT has made include in piracy software company MUSO, and online platform Everpress.

Managing director of Puma Private Equity, part of Puma Investments, Rupert West, said the VCT offers investors the opportunity to gain access to a broad range of the UK’s most innovative and entrepreneurial companies.

“As a newer VCT, Puma Alpha VCT has an advantage in that it can adapt quickly to a volatile economic environment, and has the ability to focus on sectors that are well-placed to navigate the current headwinds,” he said.

“Clearly we’re going through a sustained period of uncertainty which is unlikely to abate anytime soon, but our generalist, sector-agnostic approach enables us to mitigate exposure to sector-specific challenges, and we believe we can provide exciting opportunities for our investors.”

Chief executive of Puma Investments, David Kaye said: “Demand for VCTs is as strong as ever, and with the measures announced in the recent Autumn Statement increasing tax bills for many, this is only likely to increase. 

“For higher earners, including where pension allowances have been fully utilised, VCTs offer a compelling opportunity to back growth businesses across the UK whilst accessing generous initial and ongoing tax reliefs.”

The minimum investment in the VCT is £3,000.

VCTs offer a 30 per cent tax relief if investors leave their money in the vehicles for five years.