Octopus Investments is launching a £20m fundraise for its two AIM VCTs as it sees a pick-up in demand for the sector.
The AIM VCT and AIM VCT 2 target a 5 per cent dividend yield every year and invest in around 70 different companies. Octopus has also allowed for the fundraise to be extended by £10m.
Stuart Lewis, business line manager for VCTs at Octopus Investments, says: “This latest fundraise follows swiftly after new share offers were announced for Octopus Titan VCT and Octopus Apollo VCT, and is in response to increased demand from financial advisers and direct investors for VCTs.”
Andrew Buchanan, joint fund manager of the Octopus AIM VCTs, adds: “For investors who are seeking growth from investing in smaller companies and regular tax-efficient dividends, AIM VCTs are a compelling investment prospect and active management can unlock some real value.”
The new share offer will be open until December 2016, or until the capacity is reached. Minimum investment is £5,000 and initial fees are 3 per cent through an adviser, with ongoing charges of 1.5 per cent.