View more on these topics

Baronsmead looks for tip-top companies

Isis Equity Partners is planning a series of share offers for the
Baronsmead 4 VCT to increase its size to £30m over the next nine
months.

The first of these offers aims to raise up to £2m for the 2003/04 tax
year and will offer investors extra shares of 0.5 per cent of the amount
they invest to encourage early investment.

Baronsmead 4 was established in December 2001 and has raised
£21m to date. During that time it has made 17 qualifying investments,
of which two have been sold. Further fund raising will increase the
portfolio to around 40 investments.

The VCT aims for long-term capital growth by investing in a portfolio
of unquoted and Aim-listed companies. Although it is a generalist
VCT, it favours sectors such as business services, consumer
markets, healthcare, information technology and media &
communications. Current investments include Aim-listed IT training
firm Xpertise Group and marketing services agency RLA Media.

The VCT&#39s investment policy is to target established and profitable
companies that have carved out a strong niche in their particular
market, supported by entrepreneurial management teams who are
committed to good business strategies. They are likely to be seeking
to raise new capital for expansion or will be the subject of a
management buyout.

Product providers are choosing to top-up existing VCTs in the current
market rather than introduce new VCTs because investors&#39 appetite
is still below its peak as a result of the recent bear market.

A top-up issue like Baronsmead 4 may also be more beneficial
investors than newly established VCTs because they have a track
record and will already have some qualifying investments in place. In
contrast newly-established VCTs initially hold cash or fixed-interest
while suitable unquoted companies are found.

Investing in unquoted companies as the market recovers could be a
shrewd move for investors seeking VCT tax advantages, but this is
also matched by high risks that other investors will not feel
comfortable with.

Recommended

Bob the property portfolio builder

Bob is a UK resident with a foreign domicile. He is a high earner in the UK and has been concerned that he has not been able to take advantage of the perceived tax advantages of his domicile. He has decided to buy a second home in the UK. Is there any merit in his […]

Abbey at centre of closure rumours

Speculation that Abbey may close its Edinburgh Scottish Provident office with as many as 500 jobs being lost will not be confirmed until next year, the Group has said. Following reports that trade unions expect 500 of 750 jobs at its Edinburgh office to be lost as Abbey continues its current review of its sites, […]

Abbey at centre of closure rumours

Abbey says it will not comment until next year on speculation that it may close the Edinburgh office of Scottish Provident, with the loss of up to 500 jobs. Following reports that trade unions expect 500 out of 750 jobs at the Edinburgh office to be lost as Abbey continues to review its sites, Abbey […]

Rodrigues steps down from FSA board

Bradford & Bingley group chief executive Christopher Rodrigues is to leave the FSA board when his second term expires on 10 December. Rodrigues has been on the board for six years. National Consumer Council chairman Deirdre Hutton is to take over as deputy chairman of the board and chairman of the FSA committee of non-executive […]

Childcare - thumbnail

Three questions for employers…

The Family and Childcare Trust’s annual survey has been widely reported in the media and the two headline figures were these: the average cost of a nursery place for a child under two has risen by 33 per cent since 2010; and the costs have risen by five per cent in a single year.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com