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Albion Ventures launches new VCT offer

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Albion Ventures intends to launch a prospectus offer of new ordinary shares for subscription in the 2013/14 and 2014/15 tax years, subject to obtaining regulatory approval.

The offer will extend the opportunity to invest in the six VCTs managed by Albion. 
 
The new offer is due to open on 17 March and scheduled to close on 30 September 2014.
 
Albion’s decision to launch a new offer ensures that it will be able to meet expected demand in what is traditionally the busiest period of the tax year.  Funds raised by Albion this tax year are 80 per cent higher than this point last year and there is a significant chance that its existing Top Up Offers will be fully subscribed before the end of the tax year. 
 
Albion’s new offer underlines the growing popularity of the VCT market, which is looking to raise over GBP600m this tax year, some 123 per cent higher than the GBP269.2m raised during the 2012/13 tax year.  VCT fundraising across the industry is up 69 per cent this tax year on the previous tax year and assets under management have reached an all-time high of GBP2.9bn as at the start of 20143.         
 
Patrick Reeve, managing partner at Albion Ventures says: “The VCT market has come of age and, based on our own experience, is attracting an increasingly wide range of investors, from young professionals to the comfortably retired.  The catalyst has been the combination of low returns on savings products and the squeeze on annual and lifetime pension allowance.  Investors are telling us that they see VCTs as having a proven ability to deliver a reliable income stream and can act as a tax-efficient retirement supplement.” 
 
The launch of the new prospectus offer increases the amount that can be raised by the Albion VCTs under the non-prospectus and prospectus offers to GBP27m in aggregate.
 
Albion’s offer is targeting a monthly tax-free income of five per cent, equivalent to 7.1 per cent on the net cost of investment after up-front tax relief at 30 per cent. 
 
Investors in the offer also have the option of boosting their capital growth by participating in the dividend reinvestment scheme (DRIS), under which dividends are reinvested in the form of new shares in Albion VCTs.

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