A media oriented VCT from ProVen Private Equity is to invest up to 15% of investor money into US med...
A media oriented VCT from ProVen Private Equity is to invest up to 15% of investor money into US media companies.
VCT legislation requires that 70% of the portfolio must be invested into qualifying UK businesses. Gordon Powers, chairman of ProVen said the trust will invest 80% into the UK and 15% in the US and any remaining balance will go into gilts and cash.
Powers added: "We now feel investors are more discerning about where their money goes and have looked to the US. There many developing businesses in the US and we have offices in New York and Los Angeles."
The ProVen Media VCT will invest in private companies with strong intellectual property, either in the media and enabling technology sectors or through the ownership and exploitation of a brand.
Powers said: "We are well known for focusing on media, technology and brands in the private equity market. We feel VCTs are ready to move into more focused areas. Our team has over 35 years of experience in the private equity media and technology world."
In the past, other ProVen funds have invested in companies such as UBC Media, Sooty International and Thomas the Tank Engine. He added: "Brand companies we have invested in include Blue Stratus and two Yardley brands.
"In addition we have managed money for media companies including United News and Media and Sony."
During the three years before the VCT must be 70% invested in qualifying companies. The target is to remain flexible. Powers said: "While uninvested, some money may go in to cash and gilts, although we are looking at putting some into small cap media stocks."
The ProVen MediaVCT will invest a maximum of £1m in a single company, which will typically be part of a larger investment involving other funds managed or advised on by ProVen. These overall investments will range from £1-15m.
Powers said the goal for the Media VCT is to raise up to £30m, which would bring the total VCT assets under management or advice to more than £80m. ProVen manages the ProVen VCT and the Guinness Flight VCT.
Offers for subscription are to open in early February 2001 and will be open for investment in the 2000/2001 and 2001/2002 tax years.
The minimum investment is £5,000 and the maximum subscription is £100,000 per tax year.
Contact: 020 7451 6500
Partner Insight: For Blackfinch, the arrival of its IHT portfolio services was a 'natural evolution' in the group's offering and points to an established track record of returning cash to investors.
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