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Launched in 2018, Seneca Growth Capital VCT (B Share class) looks to invest in a mixture of AIM-quoted and unquoted companies with a preference for later-stage opportunities.
The share class has net assets of £12.6 million, of which £8.8 million is invested in a portfolio of 28 companies, including 18 AIM-quoted investments (December 2024). While the trust is sector agnostic, it currently has a large weighting towards life sciences.
Since launch, the VCT has achieved two full exits from its unquoted portfolio, with its most successful investment, ADC Biotechnology (detailed below) achieving a 3.6x return. There have been several realisations from the AIM quoted portfolio.
These returns, along with existing distributable reserves, have helped the B Share class pay cumulative dividends, equivalent to 16.8% of starting NAV (June 2025). Over the five years to 30 June 2025, the VCT delivered a total return (including dividends) of -33.6%. Past performance is not a guide to the future; dividends are variable and not guaranteed.
- Targets a dividend of at least 3p per share – not guaranteed
- Minimum investment: £3,000
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.
The manager
The VCT is managed by Seneca Partners Limited.
Seneca Partners was founded in 2010 by SME investment specialists, Ian Currie, Tim Murphy and Richard Manley. They aimed to fill a funding gap for smaller companies in the North of England.
In 2018, Seneca Partners took over the management of Hygea VCT plc, renamed it, and launched a new and separate B Share class. To date, it has deployed over £150 million across the VCT and its two EIS funds (December 2024).
The VCT is managed by Matt Currie, a Chartered Accountant with experience at Deloitte and RBS, and overseen by an investment committee consisting of Seneca’s three founding partners. Matt is supported by an investment director and an investment executive.
Meet the manager
Video interview: Richard Manley, Seneca Partners
Investment strategy
The Seneca Growth Capital VCT is sector agnostic, although it currently has a large weighting towards the life sciences sector. It will consider both unquoted and quoted companies and does not target a particular split between the two.
When investing in quoted businesses, the team relies on strong relationships with national brokerage firms to access fundraising rounds. In particular, it benefits from co-founder Ian Currie’s previous experience of raising capital for many AIM-quoted businesses. Depending on price targets and market outlook, Seneca is willing to realise its quoted positions after a short holding period to reduce downside risk and manage liquidity.
Seneca will use its network of non-execs and industry partners to conduct technical due diligence where necessary, while the investment team focuses on valuation and the management’s ability to deliver a company’s planned growth.
The VCT follows the same generalist investment strategy as Seneca’s two EIS funds, often sharing the same deal flow and co-investment opportunities.
Portfolio overview
The Seneca Growth Capital VCT (B Shares) has net assets of £12.6 million, of which £8.8 million is invested in 28 companies. The remaining c.£4 million is split between cash and money market funds (December 2024).
As at December 2024, approximately 70% of the invested portfolio is in unquoted companies, while the remaining 30% is AIM-quoted (down from 46% in the previous year). The decrease in AIM exposure is largely due to a decline in the value of quoted holdings, as well as the manager's decision to rebalance towards private company investments.
In the year to December 2024, the VCT invested £1.6 million into three new companies and £0.4 million in four follow-on investments.
Sector allocation by value (%)
Source: Seneca, sector allocation by value, December 2024.
Examples of portfolio companies
Largest investment
Bright Network (unquoted)
While running his first business, James Uffindell (Bright Network’s founder) noticed that companies in a rush to fill jobs end up hiring people who are right on paper but not the best fit. This experience led him to launch Bright Network, a recruitment platform that helps employers easily connect to the UK’s brightest graduates.
The business has a presence in every UK university and over 1 million members, which its advanced data analytics and AI ‘matchmaker’ platform helps connect to employers. Alternatively, companies can create adverts, using more than 300 million data points to reach the right people at the right time. The platform is used by blue-chip clients including Goldman Sachs, Google, and Deloitte.
The VCT invested a total of just under £600,000 starting in March 2020. The position is currently valued at £1.2 million– past performance is not a guide to the future.
Recent investment
Directa Plus Plc (quoted)
Graphene’s properties as an incredibly light and strong conductor of both electricity and heat make it valuable in applications from environmental waste management to textiles and composites.
Directa Plus has developed a process to manufacture different grades of graphene which uses less water and energy than traditional methods and doesn’t rely on chemicals and solvents. For instance, its Grafysorber product is used to absorb oil spills and is at least five times more effective than existing technologies according to management.
After facing some challenges in 2024, in its update for Q1 2025, the company confirmed it expects a 40% increase in revenues, supported by renewed contracts with major customers and a full-year order book totalling €7 million.
The Seneca Growth Capital VCT first invested £312,000 in June 2024 as part of a £6.8 million round. The funding was expected to help strengthen the company’s commercial and operational capabilities, support capital expenditure and fund working capital needs through to profitability. Directa Plus had previously been backed by the Seneca EIS fund.
Exit track record
Since launch, the VCT has achieved two full exits from its unquoted portfolio, and several realisations from the AIM quoted portfolio, which are more easily bought and sold than private (unquoted) companies. Collectively these have generated proceeds of £5.3 million on an investment cost of £2.4 million.
Example of an unquoted exit
ADC Biotechnology
ADC Biotechnology is a commercial developer of antibody-drug conjugates (ADCs). ADCs are a class of drugs designed to deliver potent chemotherapy agents to cancer cells. Using its patented ‘Lock-Release” technology, the company aims to speed up and simplify the ADC production process while significantly lowering costs.
The company has two distinct revenue streams: proprietary drug development and external support services. Currently, ADC Biotechnology has one product commercially available along with a pipeline of four other treatments, at various stages of clinical trials.
In 2021, the company was acquired by Sterling Pharma Solutions, a UK-based pharmaceutical company. This generated c.£550,000 in proceeds for the VCT, equivalent to a 3.6x return on investment cost. Past performance is not a guide to the future.
Example of a failure
Old Street Labs
As can be expected, not all investments work out. Old Street Labs is an example.
The company designed bespoke software, including mobile apps, web platforms, and AI-driven tools for start-ups.
In 2023, poor market conditions and the loss of several key accounts created significant cash flow pressures. Despite additional funding and cost-cutting measures the company started looking for a buyer but this was unsuccessful and the company entered administration in November 2024.
The VCT's total investment of £1 million was written down to nil.
Performance and dividends
The VCT’s AIM-quoted exposure has hindered performance following significant market volatility over the previous two years. The unquoted portfolio has fallen by a lesser extent.
Over the five years to 30 June 2025, the VCT delivered a total return (including dividends) of -33.6%. 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 VCT targets dividends of at least 3p per annum in relation to the B Shares. Over the last five years, the VCT has paid out dividends per B share equivalent to 16.8% of the starting net asset value. Please note, past performance is not a guide to the future and 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 31/12/2019 to 30/06/2025.
Dividends paid per calendar year
Source: Morningstar. Past performance is not a guide to the future. Dividends are variable and not guaranteed. Dividends paid per calendar year to 30/06/2025.
Dividend yield history (% of starting NAV)
| Calendar year | Dividend as % of NAV |
|---|---|
| 2020 | 3.2% |
| 2021 | 3.3% |
| 2022 | 3.0% |
| 2023 | 3.7% |
| 2024 | 4.2% |
| YTD | 2.9% |
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.
Dividend Reinvestment Scheme (DRIS)
There is currently no Dividend Reinvestment Scheme. The company is considering launching a dividend reinvestment scheme in due course.
Share buybacks
The board intends to buy back shares at up to a 5% discount to the prevailing net asset value. This is not guaranteed – please see the offer documents for details.
Discount history
VCT shares are traded on the London Stock Exchange. Similar to investment trusts, the share price can fluctuate and can be different from the VCT’s net asset value (NAV), i.e. the value of the VCT’s underlying investments. The difference between the share price of a VCT, and its net asset value per share, is called a discount.
Based on data from Morningstar, the discount to NAV as at 30 June 2025 was -4.8%. Over the previous five years the average discount to NAV was -4.2%.
The discount history is based on the closing share price of the VCT at the end of each month, divided by the latest net asset value at the time. Past performance is not a guide to the future. Investors looking to sell their VCT shares may get a better price using the VCTs’ share buyback facilities, although this is not guaranteed.
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.
The VCT has significant exposure to AIM. AIM shares can be very volatile and could suffer extreme volatility if the market falls sharply. The difference between the buying and selling price of AIM-quoted companies is often wider than those listed on the main market.
Charges and savings
A summary of the main charges and savings is shown below. The net initial charge shown includes the Wealth Club saving and any early bird discount. The investment may have additional charges and expenses: please see the provider documents including the Key Information Document for more details, offer price and share allotment calculation methodology.
Please note, capacity – for the offer or any early bird savings – can be reached early, and we may not be notified of this by the VCT in real time.
| Full initial charge | 5.50% |
| Early bird discount | — |
| Wealth Club initial saving | 2.25% |
| Existing investor discount | 1% |
| Net initial charge through Wealth Club (new investors) | 3.25% |
| Net initial charge through Wealth Club (existing investors) | 2.25% |
| Annual management charge | 2% |
| Annual administration charge | See details |
| Performance fee | 20% |
| Annual rebate from Wealth Club | 0.15% |
More detail on the charges
The full initial charge shown in the table above is before any savings and discounts; the net initial charge is after available savings and discounts. When you invest through us, Wealth Club will receive commission each year (up to 0.65%). Commission is paid by the product provider so there is no additional charge to you.
Please see the provider's documents, including the key information document, for more details on the total fees and charges.
Annual rebate when you invest through Wealth Club
The Seneca Growth Capital VCT offer includes an annual rebate for Wealth Club investors, payable for the first three years. This is a rebate of our renewal commission and should be equivalent to a percentage (shown in the table above) of the Net Asset Value of the Offer Shares issued to you when you invest. Terms and conditions apply.
Our view
The VCT is managed by Seneca, an established regional asset manager. The VCT’s strategy is a combination of Seneca’s two EIS funds, allowing all three to share deal flow and resources. Seneca believes this collaboration helps the trust participate in larger deals and invest in more established businesses than might otherwise be possible for a VCT of its size. However, it should be noted that the Seneca AIM EIS Fund is currently closed and is unlikely to provide the same level of support as in previous years.
Similar to the EIS funds, the VCT follows a generalist strategy. However, at present there is a significant weighting, particularly within the quoted portfolio, towards life science businesses. Although Seneca does not promote itself as a sector specialist, it has developed a network of technical partners in this field.
The VCT’s negative performance has been driven by the quoted portfolio, which has fallen in value by around 70%. This compares with a fall of c.5% for the unquoted portfolio (December 2024).
The VCT has used exit proceeds, along with existing distributable reserves, to pay an annual dividend of 3p per share since 2018. Please note, past performance is not a guide to the future and dividends are variable and not guaranteed.
This financial promotion has been communicated and approved by Wealth Club Ltd on 30 April 2024
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.