Octopus Investments, a UK-based investment firm, has launched a £20m joint fundraising by its two Alternative Investment Market (AIM) Venture Capital Trusts (VCTs).
The fundraising, which cound be extended to £30m, offers the opportunity to invest into both Octopus AIM VCT and Octopus AIM VCT 2.
Introduced by the UK government in 1995, VCTs provide a source of funding for smaller companies in the UK in order to help them expand and stimulate growth. They also deliver tax benefits for investors including 30% upfront income tax relief on the investment, tax-free dividends and exemption from Capital Gains Tax.
The Octopus AIM VCTs are managed by the Smaller Companies team at the firm, which manages over £500m. The portfolios of the two AIM VCTs now comprise 60 or more holdings in a range of sectors including Advanced Computer Software Group plc, a software and IT services provider, Staffline Group plc, a provider of recruitment services and government training initiatives, and Wealth Manager Brooks Macdonald Group plc.
The companies in the portfolios have an average turnover expected to exceed £100m in 2014.
FinSMEs
01/09/2014