Corporate finance advisor, Teather & Greenwood has made its first foray into the growing VCT market with the launch and flotation of T&G AIM VCT. The fund hopes to raise £20 million and will invest primarily in AIM-listed companies across a diverse range of industry sectors.
T&G will draw on its experience as a promoter and broker of over 20 VCTs. The firm is a leading corporate advisor and broker to over 50 AIM-quoted companies and deal flow will benefit from extensive corporate finance and research activities in this market segment.
T&G AIM VCT will be managed by John Sweet who joined Teather & Greenwood Investment Management in October from Invesco Perpetual Unit Trust Managers where he was responsible for both the £364 million UK Smaller Companies Unit Trust and the £83 million UK Smaller Companies Investment Trust.
Sweet said that the VCT will target established companies with a good track record. Around 60 per cent of investments will be in AIM stocks and the remainder will be in companies looking to list on AIM. “There are some good returns to be made pre-AIM,” he said.
Over 60 VCTs have been launched over the past six years and the last couple of months in particular has seen a frenzy of launch activity in the VCT sector. VCT veteran Quester is in the process of raising for its fifth fund and further offerings include Aberdeen Murray Johnstone Private Equity’s £30 million fund, Gartmore Premier VCT (£25 million), Electra Kingsway (£25 million), Bioscience VCT, a £20 million joint-venture between Medical Marketing International Group and Octopus Asset Management and NVM’s third £25 million generalist VCT fund.
Sweet commented on the growing competition in the VCT segment. “This is a testing period, but we believe the opportunities to invest the money are very good. The number of investments we make is of course subject to the money we raise, but we are looking to make around 20 investments in a mixture of old and new economy companies.”
Corporate law firm Hammond Suddards Edge advised T&G on the new VCT, led by London-based corporate finance partner Robert Hamill.