Downing ONE VCT

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This VCT is are not currently open for investment, but we will update this page as soon as information on new offers becomes available.

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Downing ONE VCT holds a mix of growth and income-producing investments, split around 40:60. The growth portfolio includes many AIM-listed companies. The income portfolio is entirely in unquoted companies, many of which are asset-backed. 

Highlights

  • Well-diversified VCT with around 80 investments
  • Experienced and well-resourced team
  • Backs talented entrepreneurs and management teams
  • Aims to provide income alongside capital growth
  • Target dividend of 4% of Net Asset Value per annum (not guaranteed)

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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. Investments are for the long term. They are high risk and illiquid and can fall as well as rise in value, so you could get back less than you invest.


The manager

Downing LLP is a well-established manager of venture capital and EIS funds. It has three main strands to its business: quoted equity and unquoted equity. The unquoted side is then split between asset-backed and renewable investments. In total, Downing currently manages over £1.7 billion of assets. 

Watch an exclusive video interview with Downing partners Jonathan Boss and Judith MacKenzie:

The VCT’s portfolio

61% of the Downing ONE VCT portfolio is income-focussed (of which all are unquoted businesses).

39% of the portfolio is in growth-focussed investments, including many AIM-listed companies. 

The portfolio holds a range of businesses including hotels, wedding venues and care homes. 

Target return

There is a target to pay dividends of at least 4% of Net Asset Value (NAV) per annum. The asset-backed businesses are primarily structured to generate income. Dividends are variable and not guaranteed. 

Exit strategy

Due to the higher proportion of AIM-listed businesses, the Downing ONE VCT arguably has more liquidity than most generalist VCTs, although like all VCTs it should be considered an illiquid and long term investment.

Exits within the portfolio have been fruitful over the last few years, largely down to a better banking environment, according to Downing. There has been a mix of trade buyers and management teams refinancing to purchase businesses. 

Risks

Due to the large percentage of assets held in AIM listed companies, the Net Asset Value of the VCT may be more volatile than other generalist ones. 

The usual risks with smaller companies exist with this VCT offer. For instance, VCT investments are illiquid and capital is at risk. Investors should not invest money they cannot afford to lose. 

The value of tax relief will depend on the circumstances of the individual investor and tax rules could change in future. 

Changes to VCTs were announced in the Autumn budget, which could affect the investment strategy of this VCT in future.

How to invest

There is no current share offer, but you can register your interest now to be alerted as soon as VCT offers open.

Wealth Club aims to make it easier for experienced investors to find information on – and apply for – tax-efficient investments. You should base your investment decision on the provider's documents and ensure you have read and fully understand them before investing. This review is a marketing communication. It is not advice or a personal or research recommendation to buy the investment mentioned. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination.

The details

Type
Generalist
Target dividend
-
Initial charge
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Initial saving via Wealth Club
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Net initial charge
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Annual rebate
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Funds raised / sought
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Deadline
No current offer

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