Baronsmead VCT, managed by ISIS, is offering an early bird bonus to investors who sign up to the Baronsmead VCT 2 plc latest fund raising early. The VCT aims to raise an extra £20m and will offer an additional 1% allotment of shares to those signing up in September, an additional 0.75% to those signing up in October and an additional 0.5% for December signers.
The new funds will expand the capital base of the company and allow an increased spread of risk both across a larger number of investments and the business cycle. If the offer is fully subscribed, the portfolio of investee companies could increase to 80 in total, from a total of 62 to date.
VCTs are attracting a flood of money to the market on the back of VCT tax relief introduced in the UK budget this year. The last tax year saw £60m being raised. This tax year around £350m is predicted to be raised with players such as Close Venture Management in the market with a £45m vehicle, its largest to date. The main concern for the VCT industry is whether this money will find good homes.