From now on the VCT will be managed by its current board, led by chairman Richard Hargreaves.

The decision not to appoint a new investment manager was made because the current board has the expertise to run the £1.8 million VCT by themselves, according to a statement from the company. Woodside Secretaries will continue to provide administrative and accounting support.

This development follows an unsuccessful attempt to generate £7.5 million through the issue of ‘C’ shares, which resulted in only £300,000 being raised despite the offer period being extended into the current tax year.

The trust’s performance has also been affected by disappointing showings from a number of its portfolio companies, including Famous Retail (which has gone into administration) and womenswear designer Sarah Arnett.

Arc Fund Management continues to oversee a number of funds under the Enterprise Investment Scheme, as well as a European property fund. The company had managed Arc Growth Company VCT since its launch in 2005.