Downing Four VCT targets £30m fund-raising with pair of launches

Pursues 'evergreen' exit strategies

Tom Ellis
clock • 1 min read

Downing Four VCT is launching two new offers, looking to raise £30m between them, as renewed demand in the sector is led by increasing restrictions around pension contributions, the firm said.

It is the first time Downing will accept monthly subscriptions into its Venture Capital Trust (VCT) by standing order. The firm said its two new offers would pursue ‘evergreen' rather than ‘planned exit' strategies. Evergreen VCTs have no fixed life and investors looking to sell their shares often effectively pay a penalty on exit as they sell shares at a discount to net asset value of between 5% and 20%. Downing Four, however, intends to buy back shares at a nil discount to its latest net asset value. This gives shareholders the opportunity to exit without a penalty at any time, the ...

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