18 June 2009

Albion Ventures announces its first £25 million share issue

Albion Ventures LLP has announced that it is launching a £25 million share issue for Albion Development VCT plc through a new issue of D shares during Autumn 2009. This is the fourth share issue since Albion Development VCT was launched in 1999. The new D shares will eventually merge with the existing ordinary shares after five years. This is Albion Ventures’ first fundraising following the management buyout of Close Ventures in January 2009.

The fund’s investment strategy is to establish a diversified portfolio of holdings in smaller, unquoted companies, whilst at the same time selecting and structuring investments in such a way as to reduce the risks normally associated with investment in such companies. This includes restricting the use of external bank borrowings such that the VCT, wherever possible, has a first charge over the investee company’s assets. The existing ordinary share portfolio has been constructed to create a spread across a broad number of sectors, with those that are asset-based and consumer facing, such as pubs, health and fitness clubs and cinemas, being balanced by higher growth businesses in the business services, healthcare, IT and environmental sectors. Since launch Albion Development VCT has paid over 46 pence per share in dividends in respect of its ordinary shares.

Patrick Reeve, Managing Partner, Albion Ventures said: “We think the demand for new VCT shares will increase this year and next as high earners seek alternative tax efficient investments to pensions. Smaller companies can create excellent returns at this point in the economic cycle and investing through private equity ensures investors can capture the growth. We will continue to invest without banks to ensure maximum value and control for shareholders.”
ENDS

Please click here to register for a prospectus

For further information please contact:

Patrick Reeve
Managing Partner,
Albion Ventures LLP
020 7601 1850

Gemma Gooch
Head of Sales and Marketing,
Albion Ventures LLP
020 7601 1850

Roddi Vaughan-Thomas
Peregrine Communications
roddi.vaughan-thomas@peregrinecommunications.co.uk
020 3178 6870 / 07879 402 586  

Jayne Adair
Peregrine Communications
Jayne.adair@peregrinecommunications.co.uk
020 3178 8187 / 07966 442 581
 
Notes to Editors:  

About Albion Ventures
Albion Ventures LLP is a venture capitalist established to generate long-term investment returns by investing in small private companies. The investment management team has created market leading investment performance for shareholders in the seven Venture Capital Trusts (VCTs) which they manage. In the thirteen years since the first fund was launched a dividend has been paid on every fund every year, totalling some £81 million; more than any other VCT manager.

Albion Ventures was created in January 2009 when it acquired the business of Close Ventures from Close Brothers Group plc and is structured as a partnership formed by the Close Ventures management team. The team believes that it is appropriate that a business investing in owner-managed companies is itself owner-managed. Close Ventures itself was started by the current management in 1996.

Albion Ventures looks to invest £1-10m in a wide range of growing businesses, from technology-oriented companies to service and asset-based businesses.

Albion Ventures is authorised and regulated by the Financial Services Authority.