Electra Partners launches its first VCT

22 October 2001

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Electra Partners has announced the launch on 2 October of a Â£25m venture capital trust, Electra Kingsway VCT plc, its first foray into the VCT market. The issue price of the shares is 100p each, with a minimum investment per individual application of Â£5,000 and a maximum of Â£100,000 per investor. The launch costs are capped at 5% and the annual management fee is 1.5% in year one, 2.0% in year two and 2.5% in year three and onwards (plus VAT). Initial IFA commission is 2.5% upfront with a trail commission of 0.25% per annum (for up to ten years). Electra Kingsway VCT is being promoted by Downing Corporate Finance and was advised on its launch by John Daghlian, Jeanette Thompson and Solomon Wifa of SJ Berwin.

Investments

The VCT will be invested along the same lines as all of Electra Partnersâ€™ other funds. It will take a medium risk strategy to investment, focusing on AIM-listed companies and unquoted companies that intend to float within a three-year period, or those that have a well-developed growth and cash generation strategy. Electra Kingsway will not be invested in start-up companies. Subject to market conditions and board approval it is intended that up to 15% of the companyâ€™s initial net assets will be invested in each of Electra Investment Trust plc and Electra Active Management plc over a 12 month period. Within three years it is intended that the total amount invested in these funds will be progressively reduced to approximately 20% at which point the other 80% would have been invested in smaller unquoted and AIM listed companies.