VCT returns lag private equity funds - research

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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...

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