Foresight Enterprise VCT launches £30m fundraise

investmentweek.co.uk:

The trust, which currently has a portfolio of 44 companies, targets established businesses with a low cash burn.

The trust, which currently has a portfolio of 44 companies, targets established businesses with a low cash burn, aiming for a dividend of 5% of NAV.

Opened on 13 October, the offer will close for applications on 3 April 2024 for the 2023/2024 tax year and 30 April 2024 for the 2024/2025 tax year.

«The additional funds raised will allow the company to maintain liquidity levels to take advantage of investment opportunities, maintain its dividend policy, make market purchases of its own shares and support its running costs,» the trust said.

Foresight Capital Management hit by rising rates as assets drop 27%

Over the five years to September 2023, the trust has generated a NAV total return of 32.3%, according to data from Wealth Club.  

Nicholas Hyett, investment manager at Wealth Club, said: «The Foresight Enterprise VCT targets more mature businesses, seeking investments that are either already breaking even or pretty close. That means it is often the last external investor to provide funding to its investees.

»The focus on later stage businesses, together with a large portfolio of older legacy assets, has helped the VCT develop an enviable track record of exits in recent times. A good chunk of the remaining portfolio is profitable, particularly in the top ten largest holdings, providing potential for further realisations in future."

HSBC AM launches climate technology ETF with Nasdaq