The Foresight Clearwater VCT will focus on UK buy-out and growth capital opportunities needing total funding of less than £10 million, according to a statement from Foresight. The fund will be managed by Foresight while Clearwater will act as its ‘strategic adviser’.

Mike Reeves, a managing partner with Clearwater, says the VCT will allow the finance house to maintain involvement in the small end of the finance market. He adds that the venture will be boosted by the rise in the limit on entrepreneurs’ relief from £1 million to £5 million, which came into effect last year.

Reeves comments: ‘There remains a lack of funding available in the market to support growing businesses and smaller transactions. While Clearwater’s average deal value has increased each year, we’ve never wanted to lose sight of businesses at the smaller end of the market because there are some excellent opportunities there.’

He adds, ‘One way for us to continue working with those businesses and to ensure sustainable deal flow is by offering them funding. This venture will ensure that money is injected into the economy at a level where it can create jobs and wealth.’