18 October 2010

Albion Ventures announces £15 million fundraising designed for income investors

– Top up across seven VCT funds
– Investors access mature income generating portfolios
– Immediate tax free 5% target dividend stream (equal to over 7% on net cost after upfront tax relief)
– Monthly income
– Lower risk VCT strategy

Albion Ventures can today announce their intention to raise £15 million through the Albion VCTs Linked Top Up Offer (the Offer) where investors have the opportunity to acquire shares in seven mature Venture Capital Trusts benefitting immediately from a dividend stream paid on a monthly basis from an established investment portfolio. The fundraising will capitalise on significant investment opportunities currently available and will also allow Albion to develop further their current focus on healthcare and the environment.

Patrick Reeve, Managing Partner, Albion Ventures LLP said:
“We are excited to offer this innovative linked top-up from an established portfolio as we are aware investors are seeking income. It will give investors the opportunity to participate in a mature, high yielding, diversified portfolio of 55 unquoted companies with assets of just under £200 million, balanced between lower risk, often asset backed investments that are providing a steady income stream with a smaller number of higher risk companies with greater growth prospects. Areas of particular concentration are the healthcare and environmental sectors, both of which we have been involved with for a number of years and there are now many opportunities in these areas. ”

The key benefit of the offer is accessing mature private equity portfolios with the following allocation:



In order to reduce investment risk approximately 50% of investment is in the form of loan stock and Albion has a policy for investee companies not to have external bank debt with security ranking ahead of the VCT.

All Albion’s VCTs operate a dividend reinvestment scheme giving shareholders opportunity to receive their dividend in shares with additional up-front tax relief.

Investors applying before 7 January 2011 will be eligible for an additional 1% of the amount invested in the offer (up to a maximum of £2.5 million), the costs of this being borne by the manager.