Seneca Partners has chosen a novel way to launch its new growth-focused venture capital trust (VCT) on 8 May.
It has partnered with Hygea VCT to launch a new B share class, which will be renamed Seneca Growth Capital VCT Plc upon the first allotment of the share class.
Its intention is to use the existing Hygea VCT, which originally launched in 2001 but is now realising its portfolio of existing investments, as a platform for its new fund. It said it is aiming to raise £10m in its first year and anticipated making seven to 10 initial investments.
Seneca Partners said its new B share class will be independent from existing Hygea investments, but will take advantage of Hygea distributable dividends to reward investors for joining earlier in an effort to avoid the problem new VCTs usually run into - not being able to distribute dividends to investors in the early years.
It also said this route has offered a quicker route to market than launching its own VCT from scratch.
Seneca said its generalist investment strategy will focus on strong leadership teams, robust business models, attractive growth prospects and a capability to deliver a timely and profitable investment exit.
Previously focused on growth enterprise investment scheme (EIS) funds, Seneca said it is primed to run the growth-based VCT and will look to maintain a 50/50 hybrid balance of alternative investment market-listed and unlisted VCT-qualifying companies.
Seneca has existing growth capital funds under management of more than £50m.
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