The move by Inflexion comes after it closed its second buy-out fund at £165 million.

Inflexion’s Iain Jamieson explains the firm started managing the £19.1 million VCT in 2004. After successfully negotiating two share buy-backs at the beginning of last year, the share price has risen from 38p to 64p.

However, Jamieson notes that Inflexion sees itself as more suited to the buy-out market, where it specialises in enterprises with values of between £10 million to £50 million.

‘We see ourselves as being better at the buy-out side than the VCT side,’ he says. After closing the second fund, the firm currently has £300 million of funds under management.

As for the VCT market, Jamieson adds that it remains buoyant and there ‘are a number of good potential investments out there’.

2007 research carried out by Business XL has shown that Venture Capital Trusts (VCTs) currently have over £1 billion to invest in young, growing companies.