A slow year for the VCT market is likely to pick up next month, according to Jeff Cornish, a director at international private equity firm Beringea. ‘March will go crazy,’ he tells Growth Business, ‘£120 million to £130 million will be raised during the coming month.’

A slow year for the VCT market is likely to pick up next month, according to Jeff Cornish, a director at international private equity firm Beringea. ‘March will go crazy,’ he tells Growth Business, ‘£120 million to £130 million will be raised during the coming month.’

This is, however, set to be a slow year overall for the VCT market. Cornish believes the money invested will be significantly lower at around the £170 million mark (£200 million if being optimistic), compared to around £700 million last year.

Cornish attributes last year’s surge to the change in the tax breaks by chancellor Gordon Brown, whereby income tax relief for investors was cut from 40 per cent to 30 per cent. Put simply, the aim was to invest while the tax break was at the more attractive rate.

Beringea, which has offices in the UK and US, has also recently established a presence in China. Due to the ever more global nature of business, Beringea director Trevor Hope says it makes good sense to have opened an office in Shanghai. The office currently has four employees; three more staff are expected to be added over the coming 12 months.