British Smaller Companies VCTs launch £60m fundraising drive
The British Smaller Companies VCTs have announced a fundraising offer of up to £60 million to raise fresh capital for their portfolios of technology-focused smaller companies in the UK. The offer comprises an initial £40 million, with up to £20 million available via an overallotment facility. The two VCTs together hold more than £520 million in net assets and invest in about 45 companies, with a portfolio concentrated in technology sectors such as data, software, and technology-enabled services. Recent five-year performance shows positive total returns, though distributions depend on performance rather than a fixed dividend target.
What’s changing now
Two British Smaller Companies Venture Capital Trusts (VCTs) are launching a fundraising round totaling up to £60 million. The initial raise is £40 million, plus up to £20 million through an overallotment facility. This aims to attract new capital to support their investments in UK technology-focused smaller businesses.
Key facts at a glance
- Offer size: up to £60 million (initial £40m + £20m overallotment).
- Portfolio: around 45 companies, primarily UK technology firms.
- Asset focus: data, application software, technology-enabled services, and new media.
- Dividend policy: no fixed target; distributions depend on performance.
Who is affected
The fundraising primarily affects existing and prospective investors in the two VCTs and the UK technology sector that the funds back. Investors should consider how the fund’s concentration in technology businesses may align with their risk tolerance and investment goals.
Practical next steps
- Review the offer details and eligibility criteria published by the VCT managers.
- Consider how a technology-focused VCT fits your tax position and portfolio diversification.
- Monitor the performance of the VCTs and any updates about the deployment of new capital into portfolio companies.
- Consult your financial advisor if you need tailored guidance on VCT investments and risk.
Limits and questions
Details such as the exact target dividend are not fixed; distributions depend on performance. The article notes the funds’ concentrated exposure to the UK technology sector and recent five-year returns, but it does not specify risk controls beyond the stated disclosure. Investors should ask for the latest portfolio breakdown, liquidity terms, and any changes to the overallotment facility before investing.
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- londonlovesbusiness.com — evidence source reviewed for this article.
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