Recession 'could be good' for VCTs

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An economic slowdown could be a blessing in disguise for investors in small growth companies, according to Close Ventures.

Increased dealflow, lower entry prices and the prospect of selling companies in a resurgent market are all likely to boost the returns of Venture Capital Trusts (VCTs) over the next few years. Close Ventures says growth businesses can do exceptionally well during times of recession as heavy competition can allow innovative business models to breakthrough into the mainstream. Patrick Reeve, managing director of Close Ventures, says: “A recession can actually be a good time to invest in small growth companies. I think this could be a golden age for investors.” The outlook is particularly ...

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