As Octopus Titan Venture Capital Trust starts the VCT season early – it’s the biggest name to date to start fundraising by announcing a fundraising of up to £200 million, equivalent to over a third of the total raised last year by all VCTs combined – the CEO and founder of the Wealth Club believes it marks the fact that VCTs are fast becoming a mainstream investment product.
Alex Davies said: “This is the biggest VCT raise ever and reflects the fact VCTs are fast becoming a mainstream investment option. With cuts to the pension allowances, restrictions on buy to let investing and more onerous taxation we expect demand to be greater than ever. Assessing the VCT market, 2017 looks set to be a record year for fund raising. Current estimations of between £750million and £1billion will dwarf last year’s total of £544 million”
Davies adds: “Octopus Titan is the most popular VCT by a large margin. It has a strong track record with a very experienced team behind it. Furthermore no other VCT has had the same level of success in spotting rising stars and supporting their growth to realise a successful sale to the likes of Amazon, Microsoft and Twitter.
“This latest fundraise gives investors the opportunity to support some of the UK’s fastest growing companies, and in doing so they benefit from a number of attractive tax incentives if the shares are held for at least five years, including 30% upfront tax relief, tax-free dividends and tax-free growth.”
The Wealth Club is an online investment service for High Net Worth Individuals.
