The adventurers: The pros and cons of investing in unlisted companies

Venture Capital Trust (VCTs) were initially established to encourage individuals to invest indirectly in a range of small, higher-risk trading companies whose shares and securities are not listed on a recognised stock exchange. By investing in a VCT, individuals are able to spread their investment risk over a number of companies, whilst also benefiting from attractive tax breaks. For the trading companies themselves, the VCT vehicle offers access to capital to help them develop and grow. During the past 17 years VCT managers have raised over £4.2bn. This amount represents a very signi...