Same asset class, different intent: The reality of VCTs vs EIS

VCTs and EIS share the 'same noble policy goals'

clock • 5 min read

Rather than overlapping, VCTs and the EIS provide advisers with versatile, complementary tools to address a wide spectrum of client needs, writes Stuart Mant

Venture capital trusts (VCT) and the Enterprise Investment Scheme (EIS) are the twin pillars of the UK's risk-finance ecosystem. Both share the same noble policy goal: directing private capital into the early-stage, high-growth companies that fuel UK innovation and employment. From a distance, it is easy to view these two channels as interchangeable, simply two different routes into the same asset class. Under this logic, one might assume that if the incentives for one scheme change, capital will naturally migrate to the other. However, having spent years working with the adviser and ...

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