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Growth Capital VCT

Growth Capital VCT

2021/2022 Offer: OPEN

Documents

Prospectus

Key Information Document

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.

Highlights

  • The Seneca VCT offering launched in 2018
  • Ten qualifying investments completed
  • Dividends to date totalling 7.5p per share
  • Seneca Partners Ltd is an experienced growth capital investor, now managing more than £110 million of VCT and EIS funds on behalf of investors
  • 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 £110 million of EIS and VCT capital into more than 50 SME companies through over 100 funding rounds since 2012 (figures to 31 July 2021).

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 1.7x before fees from 23 full and partial exits. By way of example, an investment subscription of £100,000 across the 23 exited companies (including  any that failed) would have resulted in an overall return (net of all costs but excluding any tax reliefs) of £140,324.

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 2021 and 2022.

Existing Portfolio

The VCT has so far invested in fourteen 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 7.5p per share.

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 the latest prospectus carefully paying particular attention to the risks detailed on pages 11 to 15.

Tax rules can change and benefits depend on circumstances.

 


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.