Albion Capital Group has reported record investor demand after closing top-up offers for its family of venture capital trusts earlier than scheduled and fully subscribed.
With investment flooding in from existing and new shareholders, 2020/2021 top-up offers across five VCTs raised a combined £45mln in January and have since lifted this to £58.5mln.
The fundraising increases Albion’s VCT funds under management to roughly £500mln across six VCTs backing 65 UK-based growth businesses.
Albion VCTs provide exposure to a range of software and healthcare companies across such areas as cybersecurity, fintech, digital health, data analytics, with most having not only demonstrated resilience through the coronavirus pandemic but also thrived.
The investment manager said the top-up offers attracted money from younger investors, with financial advisers and wealth managers reporting increasing demand from their clients to invest in nascent companies that will be the winners of the future.
“VCTs provide investors with tax efficient, long-term exposure to some of the most exciting and dynamic businesses in the UK,” said Will Fraser-Allen, Albion’s managing partner.
“These pioneering health and technology companies are at the forefront of innovation and have the potential to deliver attractive returns uncorrelated to the performance of the wider economy and traditional asset classes.
“Technology advances and healthcare breakthroughs impact all our lives and investors are responding to the opportunity to support businesses which are increasingly relevant to them and making a clear and obvious positive contribution to the world.
“We are very proud to have completed another successful fundraise and look forward to working with the exceptional entrepreneurs whose ideas and endeavours will be so important to kick-starting the UK’s economic recovery.”