Mobeus VCTs, a venture capital trust, has successfully raised £90 million in just 45 days, surpassing their initial target of £70 million by including an additional £20 million in overallotments. Wealth Club played a significant role in this fundraising, contributing £33.6 million, which accounts for 37% of the total amount raised.
The manager of Mobeus VCTs has a diverse investment strategy, targeting companies at various stages of growth. They invest in early-stage startups with less than £500,000 in revenue, as well as in later stage, profitable businesses. Some of the successful companies previously backed by Mobeus include Virgin Wines, Auction Technology Group, and photography reseller MPB.
The total net assets of the two Mobeus VCTs, Income & Growth VCT and Income & Growth VCT, amount to £338.5 million, with a combined portfolio of approximately 50 companies. Recently, the VCTs have raised their dividend target to 7% of NAV, aiming to provide attractive returns to their investors.
Alex Davies, CEO and Founder of Wealth Club, expressed his satisfaction with the successful fundraising, highlighting the increasing demand for VCT investments. He mentioned that the current market is up by 58% compared to the previous year, attributing part of this success to Mobeus’s track record of delivering excellent returns. Additionally, the anticipation of potential tax hikes for wealthy individuals in the upcoming Budget has also contributed to the growing interest in VCTs.
VCTs are known for their tax efficiency, offering up to 30% income tax relief on investments, along with tax-free growth and dividends. Given their role in job creation and economic growth, VCTs are likely to remain a stable investment option in the long term. The government has recently confirmed the continuation of the VCT scheme until at least 2035, providing investors with a sense of security and stability.
While the Mobeus VCTs have reached their fundraising target for this year, there are still other VCTs available for investors to consider. It is advisable to act swiftly when identifying a VCT that aligns with your investment goals, as demonstrated by the quick sell-out of the Mobeus VCTs. Investing early can secure your position and potentially lead to favorable returns in the future.
