Managing director Stuart Veale has lifted the minimum required for this fund to go ahead from £1 million to £5 million. If this is not reached by 24 March, the offer will close. He has done this in order to prevent managing a small fund since this would be ‘unable to diversify without taking on a relatively high level of risk’.
Instead Beringea will now run a series of ten per cent top-up issues for its original ProVen VCT. This could raise up to £11 million for this relatively mature trust, which has recently seen one of its major investments, IT group Notability Solutions, sold to South African concern Logicalis, producing a £1.25 million capital gain, or 5.6p a share.
Veale believes other VCT managers may follow ProVen’s lead since ‘the unexpectedly high number of new issues in the VCT market will result in there being many small funds.’
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