By Robert Stock Northern Venture Managers reached its minimum subscription level of £1m on the secon...
By Robert Stock
Northern Venture Managers reached its minimum subscription level of £1m on the second day of the offer period on its current venture capital trust offering, the Northern Aim VCT.
NVM hopes to raise £20m during the launch of the trust, which is the first from the group since its purchase by Edinburgh Fund Managers in June this year.
The trust, which is offering IFA commission of 3% initial, is designed to focus on recent issues on Aim and will take part in pre-flotation placings by unlisted companies and later-stage venture capital investments.
Interest in VCTs is increasing and as such, recent offerings have been risk rated by the David Aaron Partnership. The intermediary firm compared it with other VCTs open for investment now or shortly to come to market.
Aaron said that over £300m has been invested in VCTs already this year. The group has given NVM Aim a risk rating of six out of 10, where 10 is the most risky, but praised the past record of both NVM and Edinburgh Fund Managers. Of the 10 VCTs either available now or soon to be available, it was one of only three to achieve that rating.
The other two are the Close Brothers Aim VCT, which is issuing another £20m for its existing Aim VCT, and the Friends Ivory & Sime follow-up Aim VCT, which it is to launch in November.
As with the Close Brothers and Friends Ivory & Sime Aim VCTs, Aaron, who advises clients to spread risk by investing across a number of VCTs, has assigned the risk rating to the NVM Aim VCT on past performance of the investment managers.
Aaron said: "Northern Venture Managers has a successful record delivering consistently high returns in venture capital investment. It has achieved a compound annual return of 16% on invested funds since 1984. It is now owned by Edinburgh Fund Managers which has had an outstanding success with its UK Smaller Companies fund, which is up 300% over five years and 900% over 10 years."
Of the other seven VCTs Aaron rates, six are given eight on the risk scale and one at seven.
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A question of selectivity
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