Maven Income & Growth VCTs
Update (18.07.2018): New share offer announced
Maven Capital Partners has announced that two of the six VCTs it manages – Maven Income and Growth VCT plc and Maven Income and Growth VCT 5 plc – will launch a joint offer for subscription later in 2018.
The offers will raise up to £30 million (plus over-alloment facilities of a further £10 million) in aggregate across the two VCTs.
About Maven VCTs
Seasoned VCT investors will be familiar with Maven Capital Partners. It is a specialist manager of venture capital, private equity and unquoted investments. Maven began life as the private equity and VCT arm of Aberdeen Asset Management before managing partner Bill Nixon and the senior team led a management buyout in 2009.
Maven has nationwide coverage through its ten offices in Aberdeen, Birmingham, Bristol, Durham, Edinburgh, Glasgow, London, Manchester, Newcastle and Preston. The 25-strong team is well resourced and fully committed to its range of six VCTs. In total Maven manages over £415 million across all its investments.
Watch a video interview with managing partner Bill Nixon:
Maven manages six VCTs. The upcoming offer is a joint offer for two of them – Maven Income and Growth VCT plc and Maven Income and Growth VCT 5 plc (informally, Maven VCTs 1 and 5). The offer seeks to raise £30 million in aggregate, with a overallotment facility of £10 million across both VCTs.
One of the attractions of the Maven VCTs is that they can provide access to established VCT portfolios as well as exposure to newer growth investments. Changes to VCT legislation in 2015 mean VCTs now need to focus on growth capital investments into younger companies, rather than financing management buyouts and acquisitions. This affects new investments but not the existing assets, which tend to be more mature businesses.
Maven has been one of the more active VCT managers since the rule changes and has a healthy pipeline of growth deals. The six VCTs managed by Maven tend to co-invest, enabling them to invest collectively in larger transactions and target more substantial businesses which have already achieved scale.
Every transaction is subject to a structured three-stage investment approval process, led by the relevant Maven regional deal executives yet also submitting to the collective knowledge and expertise of Maven’s UK-wide team. The goal is to ensure the Maven VCTs ultimately invest only in businesses offering the prospect of a strong capital return on exit, and that each investment is secured on advantageous terms.
Maven’s investment team applies the same investment strategy across all the Maven VCTs. It targets established, entrepreneurial businesses, led by proven management teams which Maven believes have robust growth prospects. It concentrates on companies available at attractive entry multiples, which can generate regular income and have the potential to achieve medium to long-term capital appreciation.
Maven’s UK-wide coverage and investment resources enable it to access a wide range of suitable private company opportunities. It sees 800 to 1000 new opportunities each year across the regions. These are then subject to filtering. The Maven team meets weekly to discuss all new potential opportunities. Its investment process is detailed and thorough, and senior members of the team are involved at all stages of any potential new deal. Having a large team also enables sector specialism.
Typically Maven invests £2 million to £8 million per deal and benefits from non-VCT money to invest alongside. This enables larger deals and allows the VCTs to occasionally invest in more mature businesses. Many of the deals completed in the last five or so years have been development capital deals so the recent VCT restrictions should have a lesser impact than on some other VCTs.
Investors can expect the majority of the portfolios to be initially made up of management buyout, development capital, acquisition finance and replacement capital deals. The make up of the portfolio will change as more earlier-stage investments are made.
Before Maven agrees to invest in a company, it determines the likely exit route and price. Maven has a particularly strong track record of exits – 11 across its six VCT portfolios since November 2014, including trade sales to German and US buyers, as well as three secondary market disposals to other private equity houses. However, there is no guarantee the same will happen in future.
Please remember your capital is at risk. VCTs are high risk investments and are not suitable for everyone: they are long term and illiquid. Investors should not invest money they cannot afford to lose.
Tax rules can change and tax benefits depend on individual circumstances.
The announcement of the intended joint offers for subscription was made on 18 July 2018. The prospectus is intended for publication in Autumn 2018 – we will update this page as soon as information becomes available.
Investors will have the opportunity to have shares allotted in the 2018/19 and 2019/20 tax years.
The anticipated deadlines (subject to confirmation) are 5 April 2019 for shares allotted in 2018/19, and a final closing date of 30 April 2019, unless the offers are fully subscribed beforehand.
Wealth Club aims to highlight investments we believe have merit, but you should form your own view. You should decide based on the provider's documents and ensure you have read and fully understand them before investing. This overview 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.
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