The firm said it intends to build on the success of its existing Enterprise Investment Schemes (EIS), which invests in growing companies in the North West.
Seneca has teamed up with the directors at Hygea, a company that invests in emerging and established MedTech companies. The proposal is for Hygea to issue a new class of shares, whose assets will be managed by Seneca Partners, under a more generalist investment policy than currently applies to its existing share class.
Richard Manley, managing partner at Seneca, said: “We are long standing growth capital investors through our EIS division, which has deployed c.£70m in the region’s brightest prospects over the last four years and the addition of our VCT will offer investors a different tax advantaged option in an area of substantial strength for Seneca Partners.
“We will maintain our position as ‘generalist’ investors and key supporters across the Northern Powerhouse which is recognised and valued by our investors from all parts of the UK.’’
This news follows a good Autumn budget for investors in EIS, where the Chancellor announced a boost for tax-incentivised small cap schemes.
The annual allowance for people investing in “knowledge-intensive” companies through an EIS is to be doubled, and the annual investment those companies can receive will also double.
Manley added: “The announcements made in the Budget recently, together with the vitally important Patient Capital Review provide further conviction of the support needed by businesses in our heartlands, a cause we will continue to champion.”
Meanwhile, demand for VCTs is expected to rocket this financial year after HMRC revealed fundraising in 2016/17 hit a 10-year high. About £570m of VCT shares were issued in the 2016/17 financial year according to HMRC figures, up 28% on the year before and the highest since 2005/06.
