NVT and Northern 2 VCT seek £8m

Karin Wasteson
10 January 2013

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Northern Venture Trust (NVT) and Northern 2 VCT have launched a linked top-up offer to raise up to £4m for each fund.

The funds have paid a tax-free yield of more than 9% per year on the issue price for the last eight years, equivalent to gross yields of more than 12.5% for 40% taxpayers and more than 13.5% for 45% taxpayers.

The venture capital trusts are both managed by NVM Private Equity.

Each fund has established a target of 6p and 5.5p per share as the minimum level of annual dividend. The offer price per share is 91.4p for Northern Venture Trust and 82.1p for Northern 2 VCT.

Minimum investment is £5,000 in total. Investors have the option to back either or both funds. The tax relief on subscriptions is 30%, or up to £200,000 in 2012/13 and 2013/14 tax years. Closing dates are 5 April 2013 (for 2012/13 tax year) and 15 April 2013 (for 2013/14 tax year).

NVT was launched 17 years ago and has net assets of £63m. Northern 2 VCT was established 13 years ago and has net assets of £57m. Both funds rank in the top 12 in terms of total return since inception on the London Stock Exchange.