Quester is to launch its fifth VCT next month, with the aim of raising some £25m. The portfolio, Q...
Quester is to launch its fifth VCT next month, with the aim of raising some £25m.
The portfolio, Quester VCT 5, will run a similar strategy to the four previous launches and invest in the healthcare, life sciences, communications and technology sectors.
During the three-year period, before which the VCT does not have to be 70% invested in qualifying companies, the group usually invests in short-dated gilts.
The VCTs and private equity managed at Quester invest alongside each other. John Spooner, director at Quester, said: 'Typically, we will start by investing two venture capital trusts alongside each other so that we begin by offering £2m to a company. We will follow this with a further £2m from other VCTs a year later if the company fulfils its promises.
'This is a fundamental strategy for us as we do not believe a single VCT on its own can attract the good opportunities. To get into these opportunities, a VCT has to be large, around £40-£50m, and be part of a stable.'
The trust will offer 3% commission to intermediaries and there is a minimum investment of £3,000. There is a management fee of 1.5% of net assets in year one, 2% in year two and 2.5% in the subsequent years.
Spooner said: 'It is fairly easy for us to find the companies we invest in. Our teams are a known source of money, which means that a lot of the venture capital companies come our way.'
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