Octopus Investments has announced a £175m fundraiser for its £1.2bn AUM Titan venture capital trust (VCT), aiming to provide investors access to opportunities across maturing and early-stage technology companies.
The share offer is open until 9 November 2023 but may close earlier if fully subscribed. The minimum investment is £3,000 while the maximum investment qualifying for tax relief is £200,000.
The move comes as Malcom Ferguson steps up as lead fund manager of the Octopus Titan VCT, replacing Jo Oliver who leaves fund management to explore other opportunities within Octopus Investments. Ferguson has worked on Titan since 2013.
Currently invested in 117 companies, the VCT is the largest in the UK, with four of its holdings achieving ‘unicorn’ status after being valued at over $1bn.
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Ferguson said: “The headwinds that began to appear in 2021 have only worsened, with inflation seeing little sign of abating, and the UK likely to undergo a prolonged recession. However, these periods of volatility and decline can create incredible opportunities, with previous recessions seeing the rise of some of our most successful investments, such as Zoopla.
“As funding dries up, with many investors staying out of the market, the role of Titan in supporting and nurturing the great tech-enabled companies of the future becomes ever more important.”
After annual total returns of 32.8% in 2021, the trust has experienced a 10.2% drop in 2022 so far.
Octopus Titan VCT recent performance
| 2018 | 2019 | 2020 | 2021 | 2022 | |
|---|---|---|---|---|---|
| Annual total return | 4.3% | 3.3% | 2.3% | 32.8% | -10.2% |
| Annual dividend yield | 5.3% | 5.3% | 5.4% | 5.6% | 9.7% |
| NAV | 94.3p | 92.4p | 89.5p | 113.9p | 91.3p |
| Total value per share | 163.3p | 166.4p | 168.5p | 197.7p | 186.3p |
Alex Davies, CEO of VCT-broker Wealth Club, said: “Despite the gloomy economic backdrop, demand for VCTs remains buoyant. With expected freezes to the pension allowances in next week’s autumn statement and the threat of even higher taxes, we expect demand this year to continue unabated.
“After all, for wealthier investors, VCTs are one of the last sensible tax efficient investments left. Last year, Octopus Titan sold out its full £200m offer in just 28 days, so we would urge interested investors to act promptly or risk missing out.”
