The Albion VCTs, a leading venture capital trust company, has announced the launch of a new offer for up to £60 million. The offer includes £40 million with an additional £20 million overallotment option, depending on investor demand.
With total net assets of £784 million and a portfolio of around 75 companies, the Albion VCTs have a strong focus on fintech, AI & data, and healthtech. Some of their standout holdings include Quantexa and Oviva, both fast-growing businesses that operate at the intersection of AI, data, and healthcare.
One of the key attractions for investors is the tax incentives offered by the Albion VCTs. Eligible investors can receive a 20% upfront income tax relief on qualifying investments, tax-free dividends, and no capital gains tax on VCT gains, subject to the relevant rules and conditions.
Applications for the offer are now open, with an early-bird fee saving of 0.5% available for the first £10 million raised. This fee saving increases to 1% for existing investors.
Susannah Streeter, Chief Investment Strategist at Wealth Club, commented on the offer, stating, “VCTs are still a highly interesting proposition for investors looking for tax-efficient exposure to some of the UK’s most promising smaller companies. They sit at an attractive intersection between investing for growth and supporting the next generation of innovative British businesses.”
Streeter also highlighted the Albion VCTs’ substantial portfolio, with £784 million of net assets invested across around 75 companies. More than half of the portfolio is concentrated in fintech, AI & data, and healthtech, sectors where the UK has developed some truly exciting businesses with global potential.
Quantexa and Oviva are prime examples of the Albion VCTs’ success in identifying and supporting promising businesses. Quantexa, an AI-driven fraud and financial crime prevention company, has grown into a major international player since Albion first backed it in 2017. Similarly, Oviva, a digital healthcare company, recently raised €200 million from international investors to expand its AI-enabled healthcare platform across Europe.
However, investors should be aware that as VCT portfolios mature and successful companies grow, concentration in the strongest performers can increase. While this can be a positive when those businesses continue to thrive, it also means investors need to be comfortable with the additional risks.
The tax benefits of VCTs remain a major attraction for investors, with the Albion VCTs targeting dividends equivalent to 5% of NAV each year. However, these dividends are variable and not guaranteed.
Wealth Club, founded in 2016 by former Hargreaves Lansdown director Alex Davies, is the UK’s leading non-advised investment service for high-net-worth and sophisticated investors. The company provides access to a wide range of tax-efficient, alternative, and private market investments.
Wealth Club employs 43 people and has over 70,000 members and 14,200 clients, who have invested over £1.8 billion through the platform. The business has been profitable since 2017 and has received no external funding.
For further information, please contact Jo Thorne at jo.thorne@wealthclub.co.uk.
