The Venture Capital Trust (VCT) sector raised £435.7m in the 2013/14 tax year (including enhanced share buy-backs), according to figures published today by the Association of Investment Companies (AIC).
This is up 8% on the previous tax year (£402.7m), and is the third highest level ever of annual funds raised.
If enhanced share buy-backs are deducted, the VCT sector raised £420.2m in the 2013/14 tax year, a significant increase of 56% on the £269.4m raised in the previous tax year and the fourth highest level of annual fundraising.
In the year to 5 April 2014, £17.3 million of funds raised were a result of enhanced share buy-backs, just 3.9% of the total figure raised. In the same period to 5 April 2013, 33% of funds raised were a result of enhanced share buy-backs.
Data also revealed that, in the year to 5 April 2014, total assets of all VCTs increased by 12% from £2.87billion to £3.21billion.
Ian Sayers, Director General, Association of Investment Companies (AIC) said:
“The strongest fundraising season for the VCT sector in eight years and good performance has seen VCT assets rise to an all-time high.
“It is clear that demand for the sector continues to grow, as investors recognise the place of VCTs in a balanced portfolio and the role that tax reliefs play in offsetting the inherent risks of investing in smaller companies.”
Historic VCT fundraising figures