Seneca Partners and Deepbridge have both opened their second tax-efficient offerings of the tax year as investors fight to secure places in their preferred funds across the sector.
Tax-efficient investments, including Enterprise Investment Scheme (EIS) and venture capital trusts (VCTs), have been filling rapidly this tax year with some fundraising efforts doing so in record times - for example, Northern Venture Trust's VCT top-up managed to hit its £4.3m fundraising capacity in just two days.
LGBR Capital head of tax products Jack Rose has attributed the surge in sector demand to VCT rule changes, which mean management buy-out strategies are now ruled out and EIS and VCT investee companies must be be no more than seven years old. He said this has restricted the ability of many managers to raise large amounts of capital this tax year.
VCTs had raised £50m more by 31 December 2016 than they had by the same point in the 2015/16 tax year, according to the Association of Investment Companies.
Seneca has been invested in the storage sector since 2014 and its second offering of this year will look to invest a further £10m in four storage sites.
"With the majority of new VCT offers also filling quickly in recent weeks, advisers and investors are moving quickly to ensure their requirements are fulfilled in the face of potential supply issues before April 5," said Seneca Partners business development director Ian Battersby (pictured).
He continued: "With ‘renewables' no longer a qualifying home for tax advantaged investments, the market expects a surge in demand, which may not be fully satisfied this tax year."
Deepbridge, after securing £5.2m in their Seed EIS fund this tax year, is opening its Deepbridge Life Sciences EIS proposition to "provide much-needed commercialisation funding for healthcare and medical technology innovation".
Managing partner Ian Warwick said the team only invests in sectors in which it has "significant experience".
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