VCT Offers now open

The Maven VCTs target investment in young and dynamic growth businesses that often benefit from contracted recurring revenues, targeting sectors that are not consumer focused and are generally more defensive in volatile market conditions such as during the global COVID-19 outbreak, including software, cyber security, training, healthcare and data analytics.

These are Offers by two established generalist VCTs with large, highly diversified portfolios and a history of generating positive shareholder returns and regular dividends. Subscription through these new share Offers provides access to existing portfolios of private equity and AIM investments that have been selected for their potential to achieve capital appreciation and generate profitable realisations for VCT shareholders.

Maven is one of the best resourced and most active managers in the sector, with a long-standing track record of success and a regional office network offering nationwide coverage of the market for sourcing VCT qualifying investments. The funds raised will allow the VCTs to make further new and follow-on investments in ambitious, fast growing companies, at a time when Maven’s nationwide team is generating a strong pipeline of new transactions across its regional office network. Maven invests across a broad range of sectors, targeting businesses that have strong core characteristics including a business model capable of scalable growth and a highly capable management team with a proven track record in previous businesses.

Proven track record
Maven is one of the most active VCT investors, with 44 new private equity investments completed across the UK regions since April 2016, including 10 since March 2020. Our team has considerable expertise in SME investment, built up over two decades of backing dynamic private and AIM quoted companies which offer the potential to generate capital gains and support a programme of Shareholder dividends.

History of delivering profitable exits and shareholder returns
We have a track record of working closely with management teams in entrepreneurial businesses to help drive growth and create shareholder value. Since January 2016 we have achieved 14 profitable realisations* of private company investments, delivering total returns of up to 5.0x original cost, including the 2.9x exit from Symphonic Software in November 2020, after an investment period of less than two years.

Creating shareholder value
That track record of realisations has helped the VCTs to deliver positive Shareholder returns over the long term, including dividend payments* – full details of the recent dividend history can be found on each VCT's webpage at www.mavencp.com/migvct and www.mavencp.com/migvct5.

*It should be noted that historical returns and dividends are no indication or forecast of likely future realisation activity or investor returns, and the quantum and timing of dividend payments from VCTs in general is likely to be less predictable in future, and more closely linked to portfolio realisations to ensure ongoing compliance with the VCT rules – however the Boards of both VCTs recognise the continuing importance of tax-free distributions to Shareholders and remain committed to making dividend payments whenever possible.

Investor tax reliefs
Investment in a VCT offers a number of tax incentives on subscriptions of up to £200,000 by qualifying investors in each tax year:

• Initial tax relief of up to 30%* of the amount invested
• Tax-free dividends
• Exemption from capital gains tax on the disposal of VCT shares.

*Please note that new VCT shares should be held for a minimum of five years in order to retain the upfront income tax relief.

For an enquiry about an application already submitted, you should contact the Receiving Agent (Link Market Services) at vcts@linkgroup.co.uk or using the non-premium rate 0333 300 1566 helpline (9am - 5.30pm Mon-Fri, excl. public holidays, calls within the UK charged at the standard geographic rate which may vary by provider).

Allotments
Unless the Offers close early as fully subscribed, New Shares will be allotted and issued in respect of Applications received for the 2020/21 tax year around 1 April 2021, or earlier at the Directors’ discretion, and for the 2021/22 tax year, on or before 4 May 2021.

Certificates
A combined tax and share certificate (or a standalone tax voucher for Offer Shares credited to CREST accounts) will be issued by Link, together with a summary of allotment details, within ten Business Days following an allotment. Therefore, Shareholders should expect to receive certificates within 14 Business Days following an allotment.