Octopus Investments, the largest provider of venture capital trusts (‘VCTs’) in the UK, is enabling people to invest in VCTs for the first time through their ISA.
The move comes as Octopus launched the latest fundraise for its Titan Venture Capital Trust, the largest VCT in the UK. The fundraise target is £120 million with the potential for a further £80 million, subject to demand.
This is the largest ever fundraise for a VCT and if fully subscribed, would take the total fund size to over £600 AUM, providing significant capital for investment in early stage businesses across the UK.
Titan offers investors tax incentives that accompany a VCT, and access to a well-established and diverse portfolio of around 50 smaller companies. These range from very young early stage businesses, such as the retail property marketplace company Appear Here, to household names including Secret Escapes, the members-only holiday company.
The share offer is open until 4 September 2018, but may close earlier. The minimum investment is £3,000 while the maximum investment qualifying for tax relief is £200,000.
Paul Latham, Managing Director at Octopus Investments, said: “It’s a truly exciting time for VCTs. Figures have shown that during the last tax year, VCT demand was the strongest in a decade, an increase that has been fuelled by changes to pensions legislation and the buy-to-let market in recent years. VCTs are now seen by many to be a powerful planning tool, and have proved popular with those looking for a tax-efficient way to complement and diversify their portfolio.
“By enabling people to invest in a VCT through their ISA, we are opening up the VCT market to more investors. We want to give people the opportunity to access the planning benefits of a VCT and the growth potential of some of the UK’s most exciting growth companies.
“As market leader, we are proud to be able to meet both adviser and investor demand for different ways to invest in a VCT, whether through an ISA or their direct debit, while helping to drive further funding into such a vibrant sector of the UK economy.”
