Quester Capital Management is raising further funds for the Quester 5 venture capital trust (VCT).
Quester 5 was established in December 2001 and has raised £18.6m to date. It currently invests in seven unquoted companies at different stages of development. Most of these companies are involved in technology and related areas such as telecommunications.
The objective of Quester 5 is to provide income and growth by investing mainly in unquoted companies which could include start ups and established businesses looking to trade on the Alternative investment market (Aim). Around 15 per cent will also go into a portfolio of quoted companies and fixed-interest securities managed by Newton.
This VCT is a generalist VCT that diversifies across sectors and companies at different stages of development. It will look for innovative companies that offer good growth potential and will co-invest alongside Quester 4 VCT and the institutional Quester venture partnership fund.
VCT investors tend to be high-net-worth clients on entrepreneurial investors who are looking for the tax breaks that VCTs offer. Some investors will want to take advantage of low valuations among unquoted companies and as
Quester Capital Management is best known for its track record in technology and related areas, and the VCT is likely to contain a fair amount of these companies. This might not go down well with some investors who regard technology as too risky.
However, as a large generalist VCT, Quester 5 is more likely to raise funds in the current environment than smaller VCTs which focus on fewer sectors and that invest mainly in riskier start-ups.