VCT fundraising tops £365 million

Venture Capital Trust (VCT) fund managers raised a total of £365 million during the 2010-2011 tax year, the fourth highest amount on record, research finds.

Statistics from the Association of Investment Companies (AIC) show there was a £21 million increase in the amount raised in the past tax year compared with the year before. A total of £365 million was raised in 2010-11 compared with £344 million in 2009-10.

The amount is far from the record £779 million raised in 2005-06, however, it signals a return to growth in VCT investment after the recent recession low-point of £158 million in 2008-09. The total amount raised under the scheme since it was launched in 1995 stands at £4,265 million.

The result may inject some much-needed confidence in the sector after Chancellor George Osborne’s comments ahead of last month’s Budget that there remains a ‘question mark’ over the merits of the scheme. Also, there have been concerns about planned renewable energy and solar VCTs following government changes to feed-in tariffs.

Association of Investment Companies director general Ian Sayers comments, ‘The considerable capital raised by VCTs in the last tax year will help VCTs to continue to support smaller UK companies and play their part in establishing the UK as a home of enterprise.

‘The level of investment in VCTs has increased year on year since the financial crisis of 2008, proving that, as the economy recovers, the demand for investment from small and medium-sized enterprises grows.’

Historic VCT fundraising figures

Tax year       Fund raising (£millions)      
     
1995/6                       160          
1996/7                       170          
1997/8                       190          
1998/9                       165          
1999/2000                 270          
2000/1                       433          
2001/2                       125          
2002/3                         65          
2003/4                        50          
2004/5                       505                                                                          
2005/6                       779          
2006/7                       267          
2007/8                       219          
2008/9                       158
2009/10                     344
2010/11                     365
Total                       4,265

Nick Britton

Nick Britton

Nick was the Managing Editor for growthbusiness.co.uk when it was owned by Vitesse Media, before moving on to become Head of Investment Group and Editor at What Investment and thence to Head of Intermediary...

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