View more on these topics

Sitka tops up

Sitka is aiming to boost the Sitka Health Fund VCT by raising a further 10m through a C1 share offer.

The VCT, which invests in unquoted companies in the healthcare sector, has raised 10m since it was established in 2001. The healthcare sector includes companies at various stages of development in areas such as the development of new drugs and the supply of specialist software to the pharmaceutical industry.

The directors of the VCT regard the health industry in the UK as second only to the US in terms of venture capital financing and the development of pharmaceutical and bioscience companies. They believe now is an appropriate time to raise more money due the relatively stable economic outlook and the introduction of the enhanced income tax reliefs for VCTs, which will last until April 2006.

One advantage a top-up issue has over a new VCT is that investors can gain access to an existing portfolio of 12 companies. Companies with an experienced management team, a good business plan, products based on patented intellectual property , revenue and growth potential and the potential to make profits within two to four years stand a good chance of making it into the portfolio.

As a specialist product, this may be useful for VCT investors who see that there is an increasing demand for healthcare products and services with technical and medical advances throwing up opportunities to market innovative products. Generalist VCTs are less likely to invest in this sector because a great deal of industry knowledge is needed to assess companies and generalist managers may not have this.

However, in addition to the usual risks of investing in unquoted companies, there are some sector-specific risks. Some health products need to go through clinical trials and this may be a long process and could result in the product being found unsuitable for marketing to the general public.

Recommended

Horlick will head new consultancy

The co-founder of SG Asset Management, Nicola Horlick, has taken the helm of newly-launched multi-management consultancy Bramdean Asset Management. Horlick will be chief executive of Bramdean, which is being backed by private investors and will start business this month, subject to regulatory approval. The firm has appointed Sir Derek Higgs as chairman and will have […]

The route to less regulation

Tony Meadowes’ £5,570 loan nearly cost him £384,000 bec-ause of rocketing compound interest on missed payments. Of course he did not pay. What Harvey Collis of London North Securities did in charging interest of 34.9 per cent has become known as toxic Lending. In the rest of Europe, interest rates of this level are extremely […]

New financial requirements for insurers take effect

The FSA’s new prudential requirements for UK insurance firms took effect last week.The new requirements require firms to take an integrated view of the risks that they face as insurers and how much capital they should hold against them.The FSA says this means the capital held by insurance companies will be more closely matched to […]

‘German-style rules would cut missales’

The German retail financial services model of lighter-touch regulation would lead to less misselling in the UK, according to a leading IFA. MLP Private Finance chief executive Frank Mesterharm says regulation reduces the buyer’s responsibility and increases the risk for advisers. Mesterharm, who heads the UK operation of German IFA giant MLP – says if […]

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