Northern Venture Managers will launch a third generalist VCT on September 25. The VCT aims to raise £25 million from private individuals. The VCT will be the third generalist trust raised by NVM since 1995. It also manages an AIM-focused VCT and the Northern Investors Company. The £22 million share issue for Northern 2 VCT, completed at the end of June, brings the total raised by the three existing VCTs to over £100 million.
The new VCT will invest in smaller unlisted UK companies, including new AIM issues, across a spread of industry sectors and financing stages. It will co-invest with the other funds managed by NVM on deals such as NVM’s recent commitment to a £34 million round raised by biotech company, Cyclacel. The investor covers a broad spectrum of investment opportunities under £5 million.
Alastair Conn, managing director of NVM, said: “We expect Northern 3 VCT to be one of the most popular issues this year. NVM is currently seeing a strong flow of new deals, and following the recent adjustment in the quoted markets we are finding that companies’ advisors are taking a much more realistic view on deal pricing, which should have a beneficial impact on future investment returns.”
The issue will be sponsored by Brewin Dolphin Securities and investors can have their shares allotted in either or both of the current and next tax years. As with NVM’s previous VCTs the Northern 3 VCT aims to combine income yield and long term capital growth from UK companies. Under the VCT legislation it will maximise tax-free capital and income returns to shareholders.Over the summer NVM recruited two investment executives. Karl Harridence joins the Reading office from Ernst & Young and Richard Gibson, previously co-fund manager of Ley Gee’s technology based VCT, will be based in Edinburgh.