Calculus, a leading provider of tax-efficient investments, today announced the launch of its new VCT top up offer, which offers investors access to a diversified portfolio of UK companies across the fast-growing sectors of technology, healthcare, and entertainment.
Calculus is aiming to raise an initial £10 million, with an over-allotment facility of a further £10 million. The offer follows a strong financial year 2021/22 in which the Calculus VCT achieved seven exits with an average return of 2x.
The Calculus VCT, which is aiming to deliver an annual tax-free dividend of 4.5% of NAV – a target which it has hit since inception – as well as capital growth, offers investors access to a diversified portfolio of 35 companies. Investors also benefit from 30% income tax relief upfront.
By focussing on technology, healthcare, and entertainment companies – the UK’s fastest growing sectors – Calculus believes it is presenting investors with an exciting investment case. Indeed, the UK leads Europe’s technology venture capital space, and the entertainment and media industry is on track to be worth £88 billion by 2025. The UK’s strong presence of research universities and supportive government investment makes it a global healthcare leader.
Calculus, which has a 22-year track record of investing in small unquoted UK companies across its range of EIS and VCT funds, has a proven record of profitable exits, which fund the regular tax free dividend stream for VCT investors and offer capital growth for its EIS investors. Calculus delivered over £50 million to investors from exits in 2021. The firm takes a slightly later stage investment approach compared to its peers, with a strategy focused on more established Series A round companies that have a clear path to exit.
Calculus’ experienced investment team has a strong focus on supporting portfolio companies post-investment, driving growth and guiding them towards a successful sale. Recent exits include CloudTrade, a software company which automatically processes electronic documents such as invoices, sold via a trade sale for a 4x return. Mologic, a world leading innovator in lateral flow and rapid diagnostic technologies, which offered investors a return multiple of 3.6x; and Genedrive plc, a Point of Care molecular diagnostics company, which delivered a return of 2.8x.
John Glencross, CEO and Co-Founder of Calculus Capital, commented: “The case for venture capital investment in the UK has gone from strength to strength. VCTs have become an essential part of an investor’s portfolio as they reach pension limits but also as they search for diversification, tax efficiency, growth, and strong returns. The UK presents an innovative and entrepreneurial landscape for investment, particularly within the fastest growing sectors of the UK economy.
“We’re delighted to launch this new VCT share offer and provide investors with access to the innovators and gamechangers who can grow and scale the UK’s businesses of the future.”
Calculus’ current portfolio includes high-growth and innovative companies such as Wonderhood Studios, the hybrid TV programme maker and advertising business founded by former Channel 4 CEO, David Abraham; eConsult, the online check-in service that uses algorithm-based questions about symptoms and medical history to help triage NHS patients more efficiently; and Arecor Therapeutics, a globally focused biopharmaceutical company advancing today’s therapies to enable healthier lives.
VCT investments attract 30% income tax relief if held for five years. Dividends are tax free, and there is no capital gains tax on the sale of shares. VCTs are listed on the London Stock Exchange, and investors are shareholders in a listed company overseen by an independent board and run by an investment manager.