The independent investment manager confirmed it will target £8m of additional capital for its Kings Arms Yard VCT and £6m across its remaining five VCTs.
Albion’s VCT’s, which span the Technology & General trust and Development VCT, have balanced portfolios with a combined value of £340m, diversified across 60 businesses.
For investors who spread their investments across all six portfolios, Albion is offering a monthly dividend with a yield of 5.6% (8.0% after tax relief), which it said is “a potentially attractive income source in the current low interest rate environment”.
In addition, investors who apply before 2pm on 31 October 2017 for the first £10m of shares will be entitled to an “early bird” reduction in the offer costs, amounting to a 1% discount for existing investors and 0.5% cut for new shareholders.
Will Fraser-Allen, Albion deputy managing partner, expects “healthy demand” from clients against the continuing economic backdrop of low-interest rates.
“VCTs have broadened in appeal in recent years as investors recognise their potential for delivering long-term capital growth and income,” he said.
“In this unprecedented low interest rate world, investors are realising the benefits of diversified venture portfolios and we anticipate healthy demand for our latest offers.”
Fraser-Allen also cited providing support to the “UK’s young, ambitious businesses” and the firm’s “robust pipeline of potential investments” as reasons investors should sign up.
Albion’s VCTs have collectively invested £43m since January 2016 in growth companies with “particularly strong opportunities” in line with its specialisms in digital healthcare, automation, digital security and data analytics.
Fraser-Allen highlights app Locum’s Nest, which allows NHS employers to employ locum staff directly, alternative broadband provider G.Network and cyber security firm Panaseer, which provides intelligence to blue chip companies, as recent investments of the trusts.
The offers opened on 6 September 2017 and are expected to close no later than 24 August 2018 unless capacity is met beforehand.
