New profitable exit for British Smaller Companies VCTs: Elucidat, e-learning technology used by global enterprises
On 24 October, YFM Equity Partners, manager of the British Smaller Companies VCTs, announced the profitable sale of its stake in Elucidat.
The Brighton-based learning technology company has been acquired for an undisclosed amount by Learning Pool, a global provider of workplace learning solutions backed by Marlin Equity Partners.
The exit has delivered returns of 1.3x for the VCTs – with the potential of further proceeds taking a total return to 1.45x. Past performance is not a guide to the future.
Founded in 2013, Elucidat is an award-winning, cloud-based authoring platform that enables global enterprises to create high-quality, impactful, personalised, digital learning (e-learning) content for staff – in-house, quickly and at scale.
The platform’s customers include Coca Cola, Renault, Bosch, Bupa, Pret a Manger, Tesco, Primark, Metro Bank and Decathlon.
YFM first invested £3.5 million in 2019 to support product development and growth in North America. It participated in subsequent rounds as the company expanded globally, investing a total of £7.1 million in aggregate across the two British Smaller Company VCTs.
Elucidat adds to a series of profitable exits for the British Smaller Companies VCTs. Over the two years to June 2025, five full and two partial exits generated proceeds of £58.5 million on an investment cost of £26.2 million, an average 2.2x return. One of these was the exit of DisplayPlan (shop display designer for the likes of Nike, M&S, Samsung and Sainsbury’s) for a 9.6x return. Past performance is not a guide to the future; there was also one failure during the period.
What does Elucidat’s innovative software do? Why did the British Smaller Companies VCTs invest? How does VCT manager YFM’s hands-on, collaborative approach aim to help ambitious founders grow their business? How could you invest in similar companies through the British Smaller Companies VCTs? Read on to find out more.
Important: The information on this website is for experienced investors. It is not advice nor a research or personal recommendation to invest. If you’re unsure, please seek advice. VCT investments are high risk and you could lose the money you invest. Quotes in the article represent the views of those quoted and not necessarily those of Wealth Club.
We’ve worked closely with Elucidat over the past few years, supporting its evolution and helping lay the foundations for future growth. This is a great strategic outcome for the business, and we’re pleased to have played a role in its journey.
What does Elucidat do?
Elucidat’s authoring software helps corporates create personalised, on-brand, digital learning modules and courses (“e-learning content”) that employees find engaging and enjoyable.
It enables organisations to produce high-quality, impactful training quickly, without having to bring in specialist designers. Anyone can use it – from subject-matter experts, to HR, trainers or other teams. This helps set it apart from competitors’ typically more complex, harder-to-use tools that produce lower-quality learning. The platform also facilitates translation into over 75 languages.
For example, the in-house team at Pret a Manger has used Elucidat to create and deliver e-learning for employees across all roles throughout Europe – from 2000+ leaders and managers to around 100 apprentices. This won the prestigious Princess Royal Training Award in 2023, having measurably increased employee engagement and retention, and improved customer experience and sales.
Why did the British Smaller Companies VCTs invest?
The British Smaller Companies VCTs are two of the longest- established in the market.
They are managed by YFM Equity Partners – a specialist independently-owned private equity firm of over 40 years’ standing. YFM was one of the first asset managers to launch a VCT.
Through its regional network of offices, the manager seeks to invest into businesses with strong growth potential – particularly, high-growth UK software businesses looking to expand into international markets.
YFM identified Elucidat as such a company. It deemed Elucidat “a pioneering force in the rapidly expanding e-learning sector, driven by digital transformation and increasing demand for scalable content creation”.
The manager saw promise in the company’s intuitive technology, strong leadership team and clear market vision. Working closely with CEO/co-founder Steve Penfold and team, YFM supported the business as it scaled from an ambitious UK-based SaaS company into a global player. Over their five years of collaboration, Elucidat grew to serve major enterprise clients across healthcare, technology, and professional services, while continuing to build out its innovative learning analytics and AI-assisted authoring tools.
We’re incredibly proud of what we’ve built at Elucidat. Joining Learning Pool’s expanding group is an exciting opportunity to scale our impact even further. YFM have been a supportive and thoughtful partner throughout, and we’re grateful for everything they’ve helped us achieve.
How might you invest in similar companies?
The two British Smaller Companies VCTs – British Smaller Companies VCT (BSC) and VCT 2 (BSC2) – are currently open for investment. Notably, they raised £25 million in the first week of opening, at the start of October.
They offer investors exposure to a portfolio of around 43 companies (albeit not Elucidat), with a bias towards data, tech-enabled services and new media – sectors in which the manager has built an enviable track record.
In the five years to 30 September 2025, BSC and BSC2 generated a NAV total return of 63.4% and 57.3% respectively. Over the period, they paid cumulative dividends equivalent to 40.9% (BSC) and 43.0% (BSC2) of starting NAV.
The VCTs have not set a specific target dividend – dividends are variable and not guaranteed.
See performance of British Smaller Companies VCTs
NAV and cumulative dividends per share over five years (p)
Source: Morningstar. Past performance is no guide to the future. Dividends are variable and not guaranteed. The bar chart shows net asset value and cumulative dividends per share for the period 31/12/2019 – 30/09/2025.
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Alex Davies
Chief Executive
Alex was a board director at Hargreaves Lansdown, where he worked for 15 years. He was responsible for building Hargreaves Lansdown into the biggest direct-to-consumer SIPP provider in the UK with more than 150,000 clients and over £12 billion under management. He is a keen investor with a portfolio of shares, funds, student property, EIS and VCT investments.