Octopus Investments Launches Joint £20m Fundraise For Two AIM VCTs

The VCTs offer exposure to investments across a range of sectors, from building materials and pharmaceuticals to software development, with businesses at different stages of maturity.

One of the companies in the portfolio is testing laboratories firm Diaceutics, which provides the world's leading pharmaceutical companies with an end-to-end solution for the launch of precision medicine diagnostics. 

Another growth company backed by the AIM VCTs is Learning Technologies Group, a group of businesses who provide innovative learning technology solutions. 

VCTs prove resilient against wider venture capital industry decline

The vehicles, managed by the Octopus Quoted Companies team, also aim to provide investors with income through their established dividend policies. 

Octopus AIM VCT targets 5% dividend yield or 5p per share, while Octopus AIM VCT 2 aims to achieve a 5% dividend yield or 3.6p per share.

Investors will be able to invest into both AIM VCTs, with the new share offer for both VCTs open until 14 September 2024 for the 2023/2024 tax year. The offer will close earlier if it becomes fully subscribed.

They will also have the ability of splitting their investment 60/40 between Octopus AIM VCT and Octopus AIM VCT 2, or place 100% of their investment into either VCT.

Blackfinch Spring VCT launches £30m subscription offer

Kate Tidbury, senior fund manager at Octopus Investments, said: "Recent headwinds of high inflation and rising interest rates have resulted in the valuations of many smaller companies falling to levels not seen since the 2008 financial crisis.

"However, most of the underlying businesses in our two portfolios have been more robust in the year to date, leaving shares looking cheap relative to their long-term averages."

For active managers, these short-term changes in sentiment are less relevant, she said, given the "good value opportunities we can provide for our longer-term investors in inefficient areas of the market". 

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