New entrant Edition Capital VCT bringing vital growth capital to UK leisure industry

by | Oct 11, 2022

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Edition Capital, the specialist EIS and VCT manager providing vital growth capital for ambitious leisure companies, has launched an offer for £10m new investment in Edition Capital VCT Leisure Shares, with a further £10m over allotment facility.

Edition has taken over the Oxford Technology VCT – which has been renamed Edition Capital VCT– and launched its new share class, Leisure Shares. Edition Capital VCT is also undertaking a merger with the other (four) Oxford Technology VCTs.

Importantly, this merger allows the recently launched Leisure Shares to begin paying tax free dividends to investors from year one.

The Edition Capital VCT builds on the proven strategy of the Edition EIS Fund of investing in the UK leisure industry, which continues to see a strong recovery post-Pandemic. Edition collaborates with its portfolio companies providing strategic planning and dedicated support to bolster growth – this proven approach grows shareholder wealth for the benefit of investors.

Edition focuses on making investments into key sectors including hospitality, live entertainment, lifestyle and well-being, content and IP, plus digital and technology. Previous investments include coffee house and online retailer WatchHouse Coffee, Little Lion Entertainment (creator of The Crystal Maze Live and Tomb Raider Live Experience), boat charter marketplace Borrow A Boat, and Mainstage Festivals (promoter of international music festivals including Snowboxx and Kala).

Harry Heartfield, Senior Partner at Edition Capital, commented “Leisure is a key part of the UK economy. Backing smaller businesses within the UK leisure sector helps support local high streets, create jobs and develops brands that can be exported around the world. This open offer will give investors an opportunity to invest in some of the UK’s most exciting and ambitious leisure companies, while benefitting from the attractive tax reliefs offered by VCTs.

“Edition is differentiated by its leisure focus. Other VCT funds principally target the tech sector, and predominantly invests in loss making businesses which have taken a hit this year as inflation and interest rates have risen. The investment case remains strong for leisure, which are typically cash generative businesses, despite the current economic challenges. With 80+ collective years’ experience in the sector, we can see that our millennial and Gen-Z target consumers are more focussed on having experiences and socialising than previous generations, who were saving for houses or white goods. They are looking to spend their time and disposable income in more innovative and interesting ways – and lockdowns showed us that people long for social gatherings and interaction with friends. The appetite for such activities and events is booming.”

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