Aberdeen launches new Growth Opportunities VCT

22 October 2001

Tweet
Facebook
LinkedIn
Google plus
Send to

Following on from the launch of Aberdeen Growth VCT I in January this year (12 February 2001, page 11) Aberdeen Murray Johnstone Private Equity (AMJPE) launched a successive VCT, Aberdeen Growth Opportunities VCT, on 27 September. The shares are being issued at 100p each and the minimum subscription per individual application is Â£3,000. Investors can chose to invest in either the 2001/2002 tax year or the 2002/2003 tax year, with the offer for the former closing on Thursday 4 April 2002 and for the latter on Friday 28 June 2002 (unless they are fully subscribed before then). The offer has a maximum subscription value of Â£30m. The management fee is set at 2.0% (plus VAT) in the period to 30 November 2003 and thereafter at 2.5% (plus VAT) per annum. The Offer for subscription is sponsored by Ernst & Young LLP and Aberdeen received legal advice from John Daghlian and Polly Daines of SJ Berwin.

Investments

The fund will aim to achieve long-term capital appreciation mainly through investment in fast growing unquoted companies in the UK. It is intended to establish a generalist portfolio with at least 30 holdings, which will include companies from a diversified range of sectors. The primary focus of the VCT will be on unquoted companies, which are already established and generating revenues: it will mainly invest in expansion situations and management buyouts, although early-stage opportunities will be considered. The VCT will co-invest alongside other client funds managed by AMJPE, allowing it to complete larger transactions, which might have been out of its range otherwise. The money subscribed will initially be invested in a portfolio of Aberdeenâ€™s open-ended funds investing in the UK equity and bond markets. Commenting on the thinking behind the new VCT Bill Nixon, fund manager of Aberdeen Growth Opportunities VCT, says: â€˜Currently we believe there are a number of inexpensive, well-managed private companies that offer us the opportunity to invest at modest entry pricesâ€™. Gary Marshall, sales and marketing director at Aberdeen Asset Management, expands on this: â€˜The interesting thing about investing in smaller unquoted companies is that pricing often becomes more attractive when there is economic uncertainty, so this type of product represents an excellent option for the wary UK investorâ€™.

People

The VCT will be managed by Bill Nixon, a director of Aberdeen Murray Johnstone Private Equity.