Member Article

Venture capital firm aims to raise £15m

Venture capital company, Albion Ventures is looking to raise up to £15m across six of its venture capital trusts.

Albion VCTs Top Up Offers target a monthly tax-free income of 5.7%, equivalent to 8.1% on the net cost of investment after up-front tax relief at 30%.

Stakes in 58 companies, worth over £187m, have paid out dividends to shareholders every year of over £117m.

The companies in Albion’s portfolio employ over 3,900 staff, export over £110m a year and over the same period spend more than £8m on R&D.

Investors in the Offers also have the option to boost their capital growth by participating in the dividend reinvestment scheme (“DRIS”). Here dividends are reinvested in the form of new shares in Albion VCTs, allowing investors to benefit from a further 30% tax relief on the value of the dividend received.

Patrick Reeve, Managing Partner at Albion Ventures said: “Based on discussions with IFAs and wealth managers, we are expecting demand for our Offers to be at least as strong this year as investors seek to access a reliable income stream and the prospects of capital growth that are offered by our portfolio of mature VCTs.

“Our VCTs appeal to investors both pre and post retirement. The latter often treat Albion’s VCTs as a type of pension supplement, enabling them to access a strong income stream while preserving their capital. The former regard it as a long term savings plan and mostly reinvest their dividends to get a further 30% income tax relief on the value of their dividend. After retirement they can start taking the cash instead.

“Feedback from many of our investors suggests they are proud to be backing growth in the UK’s smaller companies, many of which continue to suffer from a shortage of access to finance and yet whose health plays a crucial role in the country’s economic recovery. By continuing to build our current investments and seed future successes, Albion is well placed to stimulate long term growth and generate strong returns for our investors.”

Martin Churchill, Editor, Tax Efficient Review said: “Albion is one of the founding fathers of the VCT industry, with a strong track record across their range of VCTs. With these Offers, you gain immediate exposure to a diversified blend of asset-backed and high growth companies with the added benefit of an immediate, tax-free monthly income which should make it a popular offering with investors.”

Richard Allen of Allenbridge Limited added: “Albion has a commendable, long-term VCT track record and an experienced team of investment managers. Investors looking for the opportunity of an immediate tax-free income or enhanced tax efficiency through a dividend reinvestment scheme may wish to consider the Albion VCTs Top Up Offers 2012/2013. The Offers provide access to a mature and diverse portfolio which focuses on both asset-backed and high growth enterprises.”

This was posted in Bdaily's Members' News section by Tom Keighley .