Triple Point VCT 2011
This is a new offer for the Triple Point 2011 VCT, raising up to £30 million in its new Venture Share Class. The offer seeks to raise up to £15 million with an over-allotment of £15 million.
- New “Venture” Share Class will invest in
growth capital opportunities in a range of sectors
- Raising up to £30 million (£15 million with
an over-allotment of £15 million)
- Initial target dividend of 3p per share from
2020 (not guaranteed)
- Management team intend to invest in this offer themselves
- Minimum investment £3,000
Read important documents and apply
The VCT is managed by Triple Point Investment Management LLP, which has over £1.4 billion total assets under management and a team of over 80.
Triple Point concentrates on four key areas for investment: venture capital; energy and infrastructure; lending, leasing and private debt; and property.
Watch a video interview with Ian McLennan, partner at Triple Point:
Triple Point VCT 2011 plc (TP11) issued its first shares in April 2011 and has £18.2 million in net assets (as at 28 February 2019). It has raised over £35 million which has been invested in 33 companies (as at 31 March 2018).
The VCT was originally set up as a Limited Life VCT and had an Ordinary share class, which was fully exited in January 2018. It had two further share classes, ‘A’ and ‘B’ shares, which invest in separate portfolios of Scottish hydroelectric power companies, combined heat and power plants, and lending to small and medium sized companies (SMEs).
This offer for the Venture Fund is an entirely new share class within the VCT. It will focus on providing funding to new unquoted companies at an early stage in their lifecycle, across a diversified range of sectors.
The VCT intends to make initial investments of between £50,000 and £2 million and may make further follow-on investments.
The directors intend to invest £75,000 and the Investment Management Team at least £150,000 in the offer, on the same terms as investors.
Triple Point has forged partnerships with innovation specialists, entrepreneurs, growth consultants, and venture capitalists to form the ‘Venture Network’.
The partners in the network have established relationships with a number of large corporates, from John Lewis, to BMW and Deloitte.
They work with those corporates to identify and articulate their specific challenges. The objective is to find – and ultimately invest in – start-ups that can provide a relevant solution.
Triple Point calls this a ‘challenge-led’ approach. In other words, the investment selection process starts from a large corporate with a specific need, rather than from a start-up with an unproven idea.
An example of challenge/solution is offered by John Lewis and app developer Qudini.
The challenge was managing John Lewis’s in-store customer journeys, e.g. queues and waiting times. The solution deemed best was a digital queuing system developed by Qudini. John Lewis staff takes names and phone numbers of customers who need assistance on the Qudini app. The app sends automatic SMS updates on waiting times and alerts customers when it’s their turn, alongside other features.
After a successful eight-week trial, John Lewis decided to start using Qudini across its stores and signed a significant contract. Before the John Lewis contract, Qudini had a valuation of £4.5 million. A subsequent funding round valued it at £14.5 million.
Please note: this example illustrates the types of future investments the Venture Fund aims to make. The success of this company has no bearing on the potential performance of the fund as the Venture Fund did not invest in Qudini.
Example portfolio companies
In April 2019, the Venture Fund made its first investment into two companies: Augnet Limited and MWS Technology Limited.
Augnet Ltd has developed patented technology to securely send, track and monitor SMS messages. The company’s founder, Daniel Gill, is a former Skype executive with over 20 years’ experience in the telecoms industry. He created Augnet to solve the growing issue of ‘killed’ messages – those that are sent but never delivered. Triple Point led a £1.3 million funding round to develop the platform, support testing and invest in sales and marketing.
A technology specialist, MWS Technology Ltd has created two products targeted at improving vocational training and further education within the work sector. Its first product, MyWorkSearch, is an employment platform which offers a personalised and flexible system for employers and jobseekers. MWS then launched Aptem, an all-in-one employer CRM designed to simplify apprenticeship and vocational training delivery. Triple Point first invested in 2018 through its Impact EIS Fund before offering a follow-on investment through the VCT's Venture Fund.
The Venture Fund aims to pay regular dividends from 2020, although this is not guaranteed. It is targeting a dividend of 3p per share in the summer of 2020 and 2021 and, subject to realisations, dividends of up to 5p per share thereafter.
This is a new share class, so performance is not yet available.
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.
Tax rules can change and benefits depend on circumstances.
VCTs can now only invest new money in growth capital deals. Management buyouts, replacement capital deals and investments in mature companies are no longer permitted. This results in considerably higher risks.
This is a new VCT share class. If fundraising is slow, shares may take some time to be allotted, or may not be allotted at all.
Fees and charges
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.
|Full initial charge||5.5%|
|Early bird discount||—|
|Wealth Club initial saving||3%|
|Existing shareholder discount||—|
|Net initial charge through Wealth Club (new investors)||2.5%|
|Net initial charge through Wealth Club (existing shareholders)||2.5%|
|Annual management charge||2%|
|Annual administration charge||See below|
|Annual rebate from Wealth Club (for three years)||—|
More detail on the charges
The Company may operate a buy back policy at a 5% discount to net asset value. Please see the offer documents for details.
This new VCT offers a slightly different approach to other growth capital VCTs. Its "challenge-led" strategy means it aims to invests in businesses that offer a product or service with a known demand, rather than just hoping a bright new idea works. It seeks to reduce risk by partnering the younger firm with existing, established businesses.
Read important documents and apply
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.
- Target dividend
- 3p from 2020
- Initial charge
- Initial saving via Wealth Club
- Net initial charge
- Annual rebate
- Funds raised / sought
- £6.6 million / £15.0 million
- 22 Aug 2019