| Target dividend: | 4% of NAV |
|---|---|
| Minimum investment: | £5,000 |
| Target dividend: | 4% of NAV |
|---|---|
| Minimum investment: | £5,000 |
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About Foresight
The VCT is now managed by the Foresight Ventures team, a subset of 12 members of the wider 50-strong Foresight Private Equity team, responsible for £1.6 billion across the Foresight VCTs, EIS, and institutional private equity funds (September 2024).
Founded in 1984, Foresight Group started as a specialist technology venture capital manager and now oversees c.£12.4 billion (September 2024).
The Foresight Ventures team is led by Managing Director Richard Lewis. Richard joined Foresight Group in 2022 following its acquisition of Downing’s VCT business. Prior to the acquisition, Richard served as partner at Downing Ventures for five years and previously spent nine years at Japanese bank Mitsui, investing in the US and Israel.
The three venture partners, located in the North America, Dubai, and Israel, can provide access to international deal flow and support international expansion of portfolio companies.
The team will have access to Foresight’s wider resources where appropriate, although it is envisaged that the VCT will offer a distinct alternative to the other Foresight-managed VCTs.
Important: The information on this website is for experienced investors. It is not a personal recommendation to invest. If you’re unsure, please seek advice. Investments are for the long term. They are high risk and illiquid and can fall as well as rise in value: you could lose all the money you invest.
Investment strategy
Because of the VCT’s history of mergers, the portfolio contains a range of assets.
Historically, the portfolio was split between yield-focused unquoted investments (typically asset-backed companies, such as pubs and care homes, and companies with predictable revenue streams, such as renewable energy plants) and quoted investments (typically established, cash-generative businesses quoted on AIM).
Today, the VCT’s strategy is focused on investing £0.5 million - £3 million in early-stage technology businesses. It looks to identify businesses that plan to expand internationally, particularly towards the US, seeing this as both attractive to potential acquirers and as an area where its venture partners can add value.
Performance and dividends
Over the five years to December 2025, the Foresight Ventures VCT delivered a NAV total return of -18.5% (including dividends). Over the same period, it paid cumulative dividends equivalent to 20.2% of the starting net asset value. Past performance is not a guide to the future.
Note, we show VCT returns over a five-year period as a minimum, where possible. Where a VCT has followed the same investment strategy for longer, we also show returns over 10 years.
The negative returns are largely due to poor performance of underlying investments. Another contributing factor is the discovery of an asset shortfall at the VCT’s custodian of quoted assets, IBP Markets, currently undergoing administration. As a result, the VCT estimates exposure to losses and fees of £0.88 million. More details are expected later in the year, after the conclusion of the court proceedings.
Changes to performance incentive
Following the merger, the NAV was reset to 100p per share with a new performance fee hurdle of 110p.
This effectively draws a line under any previous losses and means the manager can be rewarded for any improvements. However, it also means longstanding shareholders may end up paying performance fees despite suffering significant capital losses.
The VCT aims to pay dividends equivalent to at least 4% of its net asset value, paid twice a year, in February/March and August/September. Dividends are variable and not guaranteed.
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 31/12/2020 – 31/12/2025.
Dividends paid per calendar year
Source: Morningstar. Past performance is not a guide to the future. Dividends are not guaranteed. The graph shows the dividends paid per calendar year to 31/12/2025.
Dividend yield history (% of starting NAV)
| Calendar year | Dividend as % of NAV |
|---|---|
| 2021 | 4.3% |
| 2022 | 7.1% |
| 2023 | 3.5% |
| 2024 | 2.3% |
| 2025 | 3.8% |
Source: Morningstar. Dividend yields are based on the dividends paid over the period divided by the starting NAV of the VCT in each period. Past performance is no guide to the future.
Risks: important
This, like all investments available through Wealth Club, is only for experienced investors happy to make their own investment decisions without advice.
VCTs are high-risk so should only form part of a balanced portfolio and you should not invest money you cannot afford to lose. They also tend to be illiquid and hard to sell and value. Before you invest, please carefully read the Risks and Commitments and the offer documents to ensure you fully understand the risks.
To retain the tax benefits, VCTs should be held for at least five years. If you sell VCT shares and reinvest in new shares of the same VCT (including any mergers) within six months, tax relief can be restricted. Tax rules can change and benefits depend on circumstances.
This financial promotion has been communicated and approved by Wealth Club Ltd on 19 February 2025
Wealth Club aims to make it easier for experienced investors to find information on – and apply for – investments. You should base your investment decision on the offer documents and ensure you have read and fully understand them before investing. The information on this webpage is a marketing communication. It is not advice or a personal or research recommendation to buy any of the investments mentioned, nor does it include any opinion as to the present or future value or price of these investments. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination.