VCT News
ProVen VCTs launch £20 million Linked Offer
20 November 2008 - London - Private equity firm Beringea today announced it has launched a £20 million Linked Offer across its two VCT funds, ProVen VCT and ProVen Growth & Income VCT.
The Offer aims to raise up to £20 million through the issue of up to 10 million new D shares in both ProVen VCT and ProVen Growth & Income VCT, with investor subscriptions divided equally between the two funds. The subscriptions for the new D share class will be invested into an entirely new portfolio of investments, but through VCTs with a proven track record of performance and by an award winning fund management team.
Download ProVen D Share Linked Offer Securities Note with application form (PDF, 248k) | Download Adobe Reader
ProVen Growth & Income VCT and ProVen VCT are among the top performing VCT funds since the asset class was first introduced in 1995. Ordinary share offers from the ProVen VCTs account for four of the eight best performing VCT share offers measured by annual rate of return (Source: Tax Efficient Review - 29 October 2008). Beringea's investment management team was awarded VCT Fund Manager of the Year 2008 by Growth Company Awards (Source: www.growthcompanyawards.com).
The £20 million Offer will enable ProVen VCT and ProVen Growth & Income VCT to jointly invest up to £2 million in each new investment opportunity - twice what a single VCT can invest. Over the next three years, the funds will invest in a portfolio of unquoted smaller UK companies which offer significant prospects for future growth.
Beringea Managing Director, Stuart Veale, commented: "We believe that the investment environment for small UK companies remains positive, despite the current market uncertainty, and that 2008/2009 will be a strong vintage year for VCT investment. Entry prices have reduced significantly from the high levels we have seen in the past few years, in part due to banks' unwillingness to provide SMEs with financial support, allowing VCTs to invest in promising businesses at attractive valuations."
He added "Through this new Offer, subscribers will be able to in invest in a portfolio of new investments, but through funds that have a proven long-term performance record, a legacy of investment successes and a strong dividend history; not something that all VCTs can attest to."
Industry expert Richard Allen of Allenbridge said: "The ProVen VCTs are among the top performers in the market and have delivered an impressive stream of dividends to shareholders in recent years. I believe this new offer is an attractive proposition for investors looking to take advantage of the tax benefits of VCTs, while also looking for a long-term return on their investment."
Offers for subscription opened on 19 November and are anticipated to close on 3 April in respect of the 2008/2009 tax year, and on 29 May 2009 in respect of the 2009/2010 tax year. The offer price for the new D Shares will be £1 with a minimum investment of £5,000. Applications received by 2 January 2009 will benefit from a 1% discount to the Offer price.
ProVen VCT and ProVen Growth & Income VCT recently announced interim dividends in excess of £6 million for the six months ended 31 August 2008. The dividend announcement followed the successful exit of iLG, a leading digital media agency, to ECI in a deal which valued the company in excess of US$88 million and generated a return of 3.3x on investment.
About Beringea
Beringea is an international venture capital firm with offices in London and Detroit. In the UK Beringea manages ProVen VCT, ProVen Health VCT, ProVen Growth & Income VCT and Global Rights Fund II. Beringea launched its first VCT in 1996, making it one of the most experienced VCT managers in the UK. ProVen Growth & Income and ProVen VCT are highest performing VCTs of their launch years, respectively, according to www.taxefficientreview.com. For more information please visit www.provenvcts.co.uk.