Acuity cedes management of VCTs to Foresight

Asset management company Acuity Capital has named Foresight Group as new manager of two of its venture capital trusts (VCTs), unquote" has learnt. It comes after the NAV of Acuity ordinary shares dropped 33% in the year to 30 September 2010, even as the FTSE rose 9% over the same period.

The announcement is the latest step in the consolidation of the VCT community, with Albion Ventures taking over the management of Spark Venture Management on January 1.

Despite consolidation, industry players are optimistic that it should be a strong year for VCT fundraising, with April figures expected to meet or exceed last year's total of £340m, which itself was double the previous year's figure.

Acuity announced in December that it was looking to appoint a new manager, referring in a statement to its portfolio in the second half of the year as "very disappointing". Its largest holding, Fin Machine Company, experienced a working capital shortfall in the second part of the year, corresponding to a 52% decrease in valuation, which Acuity points to as the main cause of the VCT's decrease in share price. On a more positive note, Acuity realised its investment in Amber Taverns shortly after the year-end, generating 2.9x Acuity's original investment.

Acuity was formerly part of the Electra Partners Group and became independently owned by its management team in 2008. In addition to the two abovementioned funds, Acuity also manages an Environmental VCT. The three have combined net assets of £82m.

Acuity was not immediately available to comment.

 

 

 

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