The Pathway One venture capital trust (VCT) is arriving on the scene with the UK smaller company sector in its sights.
Sponsored by corporate advisers Beaumont Cornish, the VCT will be aiming for growth by investing in a wide portfolio of smaller companies. These will be companies that have grown beyond their initial start-up stage, but which have not yet sought initial public offer status. These companies will be chosen for their long-term potential.
Pathway will be hoping to identify companies that have a good management team, which produce competitive products and services and follow a realistic business plan. No more than 15 per cent of the VCT will be invested in any one company and there is no limit on the number of companies that it can invest in.
Pathway believes that with prices low at the moment there are some good opportunities to buy stocks. However, this is a high-risk area. Companies that are starting out can see good growth if they are successful.
The Pathway VCT is similar to the Gartmore premier VCT. The Gartmore product also aims for growth by investing in small developing companies that display good potential. However, the Gartmore product will invest in companies specifically in the alternative investment market, while the Pathway VCT will invest in small companies in general.
Beaumont Cornish also sponsored the recent introduction of the Oxford technology 2 VCT.