VCT returns lag private equity funds - research

clock •

Investors opting for tax-advantaged vehicles such as venture capital trusts (VCTs) over private equity funds would have lost out in recent years, a study suggests.

A report by national accounting group UHY Hacker Young found UK private equity delivered an average annual return of 18.7% over the last decade. This compares with 2.1% for VCTs, based on figures from the British Venture Capital Association and Allenbridge Group respectively. It says there are no comparable figures for the Enterprise Investment Scheme (EIS), but points out a 2003 HMRC study found 22% of EIS investors in the sample had lost all or most of their money, 10% lost part, 20% made a modest profit and 18% a substantial profit. Rob Durrant-Walker, tax manager at UHY Hacker Young...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Defaqto to launch rating for newer funds and portfolios

Defaqto to launch rating for newer funds and portfolios

Combines Defaqto and RSMR expertise

Jen Frost
clock 27 October 2026 • 2 min read
FCA urges private market firms to review conflict management amid rapid growth

FCA urges private market firms to review conflict management amid rapid growth

Recurring weaknesses found

Michael Nelson
clock 26 October 2026 • 2 min read
Darius McDermott: Asia's broadening investment story

Darius McDermott: Asia's broadening investment story

Fund managers have a dilemma

Darius McDermott
clock 21 October 2026 • 5 min read