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Growth Capital VCT

Growth Capital VCT

The latest offer for Subscription in the B Share Class is now open for investment with capacity available.

Documents

Growth Capital VCT Brochure

Prospectus

Application Form or Apply Online

Key Information Document (where financial advice has been given)

Key Information Document (where no financial advice has been given)

To access the VCT’s website, please click here.

Please note that the information on this website is for experienced investors only. Please read the Important Information at the foot of this page.

What is the offer?

Seneca Growth Capital VCT Plc is a generalist VCT aiming to generate returns from a diverse portfolio of both private and AIM quoted growth capital investments. These investment returns are intended to provide Investors with an attractive income stream and also capital growth over the longer term. The VCT is managed by Seneca Partners Limited.

The current offer for Subscription aims to raise up to £10 million of B Shares with an over-allotment facility of up to a further £10 million.

Highlights

  • The Seneca VCT offering launched in 2018
  • Ten qualifying investments completed
  • Dividends to date totalling 4.5p per share with a further dividend of 1.5p per share due to be paid on 24th December 2020 (ex. div. date 10th December 2020).
  • Seneca Partners Ltd is an experienced growth capital investor, now managing more than £85 million of VCT and EIS funds on behalf of investors
  • Choose between 2020/21 and/or 2021/22 tax years
  • Minimum investment £3,000
  • VCT Reviewed by Allenbridge (rated 84) and MICAP

The Manager

Seneca Partners is an experienced growth capital investor. It has raised and deployed more than £85 million of EIS and VCT capital into more than 50 SME companies through over 90 funding rounds since 2012 (figures to 31 October 2020).

The Seneca Growth Capital VCT is managed by the same team behind the EIS funds, including shareholder directors of Seneca Partners Ltd – Richard Manley, Ian Currie, and Tim Murphy. All three are SME specialists by background. Their previous experience includes KPMG, NM Rothschild, Cenkos Fund Managers, Altium, Apax, RBS, Deloitte and HBOS.

Directors of Seneca Partners Ltd and key members of the management team in the wider group of Seneca branded companies invested more than £300,000 in the VCT to date.

Investment Strategy

The VCT follows the same generalist investment strategy the manager has been applying to its EIS Portfolio Service. The VCT has benefitted and is expected to continue to benefit from the same deal flow, investment process and co-investment opportunities that come from Seneca’s EIS activity.

Seneca believes this allows the VCT to participate in a higher number of investments of a larger scale into more established businesses than otherwise possible for a VCT of its size.

Seneca seeks well managed businesses with strong leadership teams that can demonstrate established and proven concepts in addition to growth potential. Businesses may be unquoted or AIM listed.

Seneca’s record of Growth capital exits in its EIS Portfolio Service averages 1.6x before fees from 20 investment rounds. By way of example, an investment subscription of £100,000 across the 20 exited companies (including  any that failed) would have resulted in an overall return (net of all costs but excluding any tax reliefs) of £131,416.

Past performance is not a guide to future returns.

Utilising a well established footprint in the regions outside London and South East, Seneca have 10 investment sector diverse opportunities in various stages of Due Diligence in a mix of AIM and private limited companies and a healthy pipeline of further opportunities through 2020 and 2021.

Existing Portfolio

The VCT has so far invested in ten investee companies, sometimes co-investing with Seneca’s EIS funds. These include:

SilkFred Ltd (unquoted)

SilkFred Ltd is a fast-growing fashion e-commerce platform. It was created in 2012 to help independent fashion brands promote and sell online. It acts as a central marketing and sales platform, charging commission in exchange for these services, so it takes minimal inventory/working capital risk on new brands, lines or products.

Today it partners with over 600 independent brands, has over 1 million monthly visitors and 500,000 customers.

SilkFred was the first B Share pool investment – the VCT invested £500k in December 2018. Seneca had previously invested in March 2018 in its EIS and was impressed by the management ability to scale the brand and improve the overall SilkFred offering.

SkinBioTherapeutics Plc (AIM quoted)

SkinBioTherapeutics is a life science company focused on skin health. The Company’s proprietary platform technology, SkinBiotix®, is based upon discoveries made by CEO Dr. Catherine O’Neill and Professor Andrew McBain at The University of Manchester.

SkinBioTherapeutics targets three specific skin healthcare sectors; cosmetics, infection control and eczema. In each of these areas. The most advanced programme is focused on the application of the Skinbiotix® platform in managing sensitive skin in the cosmetics industry.

Seneca initially invested in SkinBioTherapeutics when it was admitted to AIM in April 2017. The VCT invested £750k in February 2019.

Please note that in providing these examples, neither Seneca Partners Ltd or Seneca Growth Capital VCT Plc is suggesting or recommending that you should buy or sell shares in the companies mentioned. As is to be expected with all growth capital businesses, investments can fail or be subject to sudden falls in value.

Target Returns

The VCT targets a dividend payment of 3p per share p.a. with an ambition to increase this to c. 5% p.a. of the B Share NAV by 2023 (subject to B Share Pool investment performance and an intention to also maintain a relatively stable NAV per B Share).

Since March 2019, the VCT has paid dividends totalling 4.5p per share with a further dividend of 1.5p due on 24th December 2020 (ex. div. date 10th December 2020).

Please note, dividends are variable and not guaranteed.

Risks

VCTs are high-risk so should only form part of a balanced portfolio and you should not invest money you cannot afford to lose. They also tend to be illiquid and hard to sell and value. Before you invest, please carefully read Prospectus carefully paying particular attention to the risks detailed on pages 11 to 15.

Tax rules can change and benefits depend on circumstances.

Fees and Charges

  • 2.0% p.a. annual management fee
  • 3.0% p.a. cost cap (including annual management charge)
  • 20% + VAT performance fee (see Prospectus for further details)

Initial fees for advised and non-advised investors may be up to 3.0% and 5.5.% respectively but reductions to the initial fee, including Loyalty and Early Bird discounts (as detailed in the prospectus relating to the 2020/21 offer) or other discounts as agreed by Seneca Partners from time to time are available.

Deadlines

Unless the offer is fully subscribed beforehand, the following deadlines apply:

  • 30/11/20 – To take advantage of the early bird or existing investor discounts
  • 08/12/20 – For applications and cleared funds to be received for inclusion in the share allotment on 9th December (and thus receive the dividend due on 24th December)

 


Important Information

You should only rely on the information provided in the Prospectus and relevant Key Information Document when deciding whether to make an investment. Seneca Partners Ltd does not offer financial or taxation advice. If you are unsure whether an investment of this type is suitable, please seek advice from your financial adviser.

VCTs are high-risk and should be considered a long term investment. They should only form part of a balanced portfolio and you should not invest money you cannot afford to lose. They can fall as well as rise in value, so you could get back less than you invest.They also tend to be illiquid and hard to sell at value. Dividends are variable and not guaranteed.