VCT fundraising set for a strong year

Albion Capital

With VCT fundraising set for a strong year, Will Fraser-Allen, deputy managing partner at Albion Capital, told GBI Magazine:

“This year’s VCT fundraising season is set to be just as big as last year’s, which was the second highest on record. In the absence of extenuating factors there’s no reason why it shouldn’t be substantial.

“Some have suggested that cliff-edge changes from the Patient Capital Review spurred demand during the last tax-year as investors rushed into existing offers. But demand drivers for VCTs are still strong.

VCT to go mainstream

“The search for tax efficient alternatives to traditional pension saving are still a big driver of VCT demand, but one of the largest drivers of their success is greater awareness. VCTs have become more mainstream and more advisers than ever are considering
them as part core tax efficient retirement planning.

“At the same time there is more demand push from clients. Clients are reading about VCTs and asking their advisers about whether they are relevant for them.

Supply crunch?

“Few raisings have been launched to date although a number have been announced. We will see a number being launched throughout the Autumn and Winter. There is the potential for some substantial raisings so it is unlikely supply will be an issue this year.

“Last year talk of a VCT supply crunch was a concern as we moved towards the end of the tax year, but some offers remained open and not all were fully subscribed. While popular offers do fill up fast we expect capacity to be available through to tax-year end.”


Albion Capital

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