The Baronsmead Venture Trust and the Baronsmead Second Venture Trust (the Baronsmead VCTs), managed by alternative asset manager Gresham House, have raised a further £50mn, bringing their total net asset value to c.£450mn1. As with previous years, this 2023/24 tax year fundraise was oversubscribed above its initial £30mn target, reflecting strong investor demand despite a challenging fundraising environment.
Launched in 1995, the Baronsmead VCTs are among the largest venture capital trusts available, offering a hybrid portfolio of public and private companies in an approach that is unique to funds of their scale. The Baronsmead VCTs have targeted an annual dividend yield of 7% of NAV since 2019, this has been achieved in each of the last five financial years.
The VCTs are managed by the Gresham House Ventures team and sit alongside the private companies focused Mobeus VCTs, which Gresham House acquired in 2021. Gresham House Ventures specialises in high-growth, scalable and technology-driven businesses in the tech, business services, consumer, healthcare and education spaces. The additional funding will be deployed into attractive private and AIM-listed companies in these sectors and beyond.
The deal continues a busy period of dealmaking for Gresham House Ventures. In recent months, the business has completed an investment into business process automation company Azarc, a €5mn investment into transport software business CitySwift, an £8.5mn investment into open banking platform Ozone API, and an exit from logistics and warehousing specialist Master Removers Group for a 3.4x multiple.
Trevor Hope, chief investment officer at Gresham House Ventures and manager of the Baronsmead VCTs, says:
“We are grateful to our investors for their continued support in this oversubscribed share offer. We are enthusiastic to deploy this capital in an exciting growth equity market which is poised to benefit from a wave of dynamic technological changes driven by the adoption of generative artificial intelligence and generally improving economic conditions. The hybrid nature of the Baronsmead VCTs allows us to target these value opportunities in private and Aim-listed companies which we believe creates a compelling investment balance of risk and return”
1. Based on combined NAV as at 29 February 2024 and amounts allotted since.
