Downing Corporate Finance has added another venture capital trust to its existing range with the aim of raising £10m.
The Downing Classic VCT is designed to invest predominately in established businesses of a high quality that have a long term track record in their sector with a consistent ability to make profits. According to Downing, two out of three embryonic businesses fail which is why the emphasis is strongly in this area.
The remaining investment, around 30 per cent, is made in fixed income securities. This part of the portfolio will be managed by Cazenove who have experience in this field, currently managing around £1.3bn.
With the attraction of up to 40 per cent capital gains tax deferral, the trust may appeal to those who have a capital gain to invest and who have already used up their Pep and tax-exempt special savings account allowances.